GAIL and BPCL sign agreement for supply of Propane for GAIL's Petrochemical Plant at Usar

In a significant move to secure availability of feedstock for its petrochemicals production, GAIL (India) Limited have signed an agreement with Bharat Petroleum Corporation Limited for 15-year supply of Propane for its upcoming petrochemical plant in Usar, Maharashtra.

The agreement was signed here in the presence of Shri Sukhrnal Jain, Director (Marketing), BPCL and Shri Sanjay Kumar, Director (Marketing), GAIL by Shri Kamlesh Sharma, Executive Director (Marketing Retail), GAIL and Shri D. V. Mamadapur, Executive Director (LPG), BPCL.

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, which is presently capable of handling 1 MMTP A of LPG imports and is undergoing expansion to accommodate 3 MMTP A of propane and butane imports.

The strategically positioned GAIL's PDH-PP project in Usar, Maharashtra, will .be India's first propane dehydrogenation (PDH) plant, which is likely to commence operations in 2025. The PDH unit will boast a nameplate capacity of 500 KTP A, with 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 tons by 2025, up from 4.9 million tons in 2020.

Shares of GAIL (India) Limited was last trading in BSE at Rs. 117.70 as compared to the previous close of Rs. 119.55. The total number of shares traded during the day was 1076555 in over 8026 trades.

The stock hit an intraday high of Rs. 121.50 and intraday low of 117.40. The net turnover during the day was Rs. 128533018.00.

Source : Equity Bulls

Keywords

GAILIndia INE129A01019 Agreement BPCL PropaneSupply