BPCL and GAIL's historic agreement

by Psu Connect
Date: 02-11-23

The 15-year supply contract, estimated at a value of over Rs 63,000 Crores, will see BPCL providing GAIL with 600 KTPA of Propane from its LPG import facility at Uran.

New Delhi: In a landmark collaboration set to redefine India's petrochemical landscape, Bharat Petroleum Corporation Limited (BPCL), a Fortune Global 500 Company and a Maharatna company, and GAIL (India) Limited a Maharatna company, have joined forces. On November 1, 2023, a momentous agreement was inked at New Delhi, solidifying a 15-year supply commitment of Propane, a crucial petrochemical feedstock, for GAIL's Usar PDH-PP project in Usar, Maharashtra.

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

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The 15-year supply contract, estimated at a value of over Rs 63,000 Crores, will see BPCL providing GAIL with 600 KTPA of Propane from its LPG import facility at Uran, which is presently capable of handling 1 MMTPA of LPG imports and is undergoing expansion to accommodate 3 MMTPA of propane and butane imports, reaffirming BPCL's commitment to meeting the growing needs of the Indian petrochemical industry.

The strategically positioned GAIL's Usar PDH-PP project in Usar, Maharashtra, represents the inception of India's inaugural propane ppdehydrogenation (PDH) plant, which is set to commence operations in 2025. The PDH unit will boast a nameplate capacity of 500 KTPA, 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. This groundbreaking collaboration between BPCL and GAIL stands as a testament to heir 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 hriving petrochemical sector.