GAIL inks 15-yr-long Propane supply pact with BPCL for Usar petchem plant

New Delhi: With a view to secure the availability of feedstock for its petrochemicals production, GAIL (India) Limited signed an agreement with Bharat Petroleum Corporation Limited (BPCL) for the supply of Propane for its upcoming petrochemical plant in Usar, Maharashtra, for 15 years. "This pioneering venture aligns perfectly with the surging demand for polypropylene, which is projected to reach 6.3 million tons by 2025, up from 4.9 million tons in 2020," said GAIL in an official statement on Wednesday.

BPCL's 15-yr Propane supply contract with GAIL valued at over Rs 63,000 cr

The 15-year supply contract, estimated at a value of over Rs 63,000 crore, will see GAIL procuring 600 KTPA of Propane from BPCL’s LPG import facility at Uran. The import facility can presently handle 1 MMTPA of LPG imports and is undergoing expansion to accommodate 3 MMTPA of propane and butane imports.

GAIL's Usar PDH-PP plant will be India's first PDH plant

The strategically positioned PDH-PP project in Usar, Maharashtra, will be India's first propane dehydrogenation (PDH) plant, which is likely to commence operations in 2025, said GAIL. "The PDH unit will boast a nameplate capacity of 500 KTPA, with propylene production seamlessly integrated into a polypropylene (PP) plant of equal capacity," said the statement.

DV Mamadapur, Executive Director (LPG), BPCL and Kamlesh Sharma, ED Marketing Retail, GAIL, signed the agreement, in the presence of Sukhmal Jain, Director (Marketing) at BPCL and Sanjay Kumar, Director (Marketing), GAIL, on Wednesday in Delhi.

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