Petronet LNG approves ₹1,200 crore CBG JV

Petronet LNG Limited (NSE: PETRONET) has approved a 50:50 joint venture with Gruner Renewable Energy Private Limited. The proposed venture plans to establish 10 compressed biogas plants with an estimated capital outlay of ₹1,200 crore. The development takes Petronet beyond its core LNG receiving and regasification business. The company currently operates 27.5 MMTPA of regasification capacity, with 22.5 MMTPA at Dahej and 5 MMTPA at Kochi. My view is that the proposed CBG expansion could diversify Petronet's growth drivers, but the financial impact will depend on project execution, plant commissioning and eventual utilisation. The ₹1,200 crore outlay also makes capital allocation an important factor to track. The next trigger is the progress of the 10 planned plants and management commentary on timelines, funding and expected returns.