Petronet LNG, Gruner to form JV for 10 CBG plants, investing Rs 1200 crore

Government owned Petronet LNG Ltd has approved the formation of a 50:50 joint venture with Noida based Gruner Renewable Energy Pvt Ltd to develop 10 compressed biogas (CBG) plants across India. The proposed investment for these CBG plant would be around Rs 1,200 crore.

The Board of Directors of Petronet LNG approved the proposal at its meeting on September 17, 2026. The proposed joint venture will be incorporated as a private limited company.

Under the partnership, the Petronet and Gruner plan to establish 10 CBG plants, each with a production capacity of 18 metric tonnes per day (TPD). Hence, the combined planned capacity will therefore be 180 TPD.

The proposed investment will support the development of renewable energy infrastructure based on CBG, which is produced from organic waste and can be used as a renewable alternative to conventional natural gas.

For Petronet LNG, the proposed venture marks an expansion into the renewable energy segment, building on its existing expertise in the natural gas value chain. The partnership with Gruner Renewable Energy is aimed at developing CBG production capacity while supporting the wider adoption of cleaner fuels in India.

The joint venture comes amid growing investment in India’s CBG sector, with companies increasingly exploring opportunities to convert agricultural residues, municipal waste and other organic feedstocks into renewable gas and associated products.

Petronet LNG said further details about the joint venture will be disclosed to the stock exchanges following its formal incorporation, in accordance with Regulation 30 of the SEBI Regulations, 2015.

At the beginning of this year, Petronet LNG signed an MoU with Indian Oil Corporation Limited (IOCL) to jointly develop 25 numbers of CBG plants across India.

About Petronet LNG

Petronet LNG operates as a joint venture promoted by four Maharatna public sector undertakings namely, GAIL, ONGC, IOCL and BPCL. the company handles roughly two-thirds of India’s total LNG imports and supplies about one-third of the country’s natural gas consumption.

About Gruner Renewable Energy

Gruner Renewable Energy claims to be among the early players in India’s CBG sector, leveraging proprietary German technology and developing large-scale biogas infrastructure projects. Gruner has a presence across 14 states, with more than 82 plants planned. According to the company, its project order book exceeds Rs 11,500 crore.