GAIL signs Rs 63,000-cr deal to source petrochemical feedstock from BPCL


PTI, Nov 2, 2023, 1:02 PM IST

State-owned gas utility GAIL (India) Ltd has signed a Rs 63,000-crore deal to source feedstock for its upcoming petrochemical plant at Usar in Maharashtra from Bharat Petroleum Corporation Ltd for 15 years, the two companies said.

”The 15-year supply contract, estimated at a value of over Rs 63,000 crore, will see GAIL procuring 600,000 tonnes per annum of propane from BPCL’s LPG import facility at Uran, which is presently capable of handling 1 million tonnes per annum of LPG imports and is undergoing expansion to accommodate 3 million tonnes a year of propane and butane imports,” GAIL said in a statement.

GAIL is constructing India’s first propane dehydrogenation (PDH) plant at Usar in Maharashtra with a nameplate capacity of 500,000 tonnes per annum. The facility, which is likely to commence operations in 2025, will have a propylene production seamlessly integrated into a polypropylene (PP) plant of equal capacity.

”This pioneering venture aligns perfectly with the surging demand for polypropylene, which is projected to reach 6.3 million tonnes by 2025, up from 4.9 million tonnes in 2020,” it said.

Polypropylene (PP) is a tough, rigid, and crystalline thermoplastic that widely finds usage in packaging applications as well as houseware, furniture appliances, toys and luggage.

In a separate statement, BPCL said, ”this groundbreaking collaboration between BPCL and GAIL stands as a testament to their dedication to driving India’s petrochemical progress. It is not only a significant milestone for both organizations but also a momentous leap forward for the nation’s thriving petrochemical sector.” The agreement was signed by BPCL executive director (LPG) D V Mamadapur and GAIL executive director (marketing-retail) Kamlesh Sharma in presence of BPCL Director (Marketing) Sukhmal Jain and GAIL Director (Marketing) Sanjay Kumar.

”The 15-year supply contract, estimated at a value of over Rs 4,250 crore per annum (based on current prices), will lead to BPCL providing GAIL with 600,000 tonnes per annum of propane from its LPG import facility at Uran,” BPCL said.

GAIL is India’s largest gas transportation and marketing company while BPCL is the nation’s second biggest state-owned oil refining and fuel marketing company.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Temple idols found desecrated in Hyderabad, case registered

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

JPC chairman Jagdambika Pal to visit K’taka on Nov 7 to meet farmers protesting Waqf notices

Indian boxer Mandeep Jangra wins WBF’s world title

IOA submits ‘Letter of Intent’ to host 2036 Olympics in India

CBDT allows tax officials to waive or reduce interest due from assessee

Like UP, bring BJP to power in Jharkhand to ‘bulldoze’ mafia: Yogi at Koderma poll rally

Related Articles More

Temple idols found desecrated in Hyderabad, case registered

Rebels to be shown the door: Maharashtra BJP chief Bawankule

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

People of Wayanad will ask me not to come there often: Priyanka Gandhi

Indian boxer Mandeep Jangra wins WBF’s world title

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Temple idols found desecrated in Hyderabad, case registered

Rebels to be shown the door: Maharashtra BJP chief Bawankule

Rohit Shetty says ‘Singham Again’ his fastest Rs 100 crore film, thanks audience for support

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

People of Wayanad will ask me not to come there often: Priyanka Gandhi

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.