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Petronet LNG, Gruner Renewable Energy Plan INR 1,200 Crore CBG Venture

Petronet LNG and Gruner Renewable Energy have signed a binding term sheet to form a 50:50 JV to develop 10 CBG plants, each with a capacity of 18 MTPD, with a combined investment of INR 1,200 crore.

October 23, 2026. By Mrinmoy Dey

Petronet LNG (PLL) has announced that the company has signed a binding term sheet with Gruner Renewable Energy to form a 50:50 joint venture (JV) for setting up 10 compressed biogas (CBG) plants across India, with a combined estimated capital outlay of INR 1,200 crore.

The term sheet was signed on October 22, 2026, according to a regulatory filing by Petronet LNG. The proposed JV will be incorporated as a private limited company and will develop 10 CBG plants, each with a capacity of 18 metric tonnes per day (MTPD).

The JV will undertake activities across the CBG value chain, including feedstock procurement, production, manufacturing, processing, compression, distribution, storage, transportation, supply, trading and sale of CBG and associated by-products. Its scope will also cover setting up, developing, establishing, commissioning, operating and maintaining the plants, along with exploring other business opportunities related to bioenergy.

Under the proposed arrangement, Petronet LNG and Gruner Renewable Energy will each hold a 50 percent equity stake in the JV. Representation on the JV's board of directors will be in proportion to the respective shareholdings of the two companies.

The proposed venture will expand Petronet LNG's activities into the compressed biogas sector, with the planned facilities intended to support the development of CBG production capacity across multiple states in India.

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Biomass

Petronet LNG

Gruner Renewable Energy

Gruner Renewable Energy CBG Plant

Pentronet LNG JV with Gruner Renewable Energy

CBG plants in india