GAIL and Shell Join Forces to Boost India's Petchem Industry with Ethane Sourcing

NEW DELHI- GAIL (India) Ltd., the state-owned natural gas processing and distribution company, has signed a memorandum of understanding (MoU) with Royal Dutch Shell Plc to explore the possibility of sourcing ethane from the US for the Indian market. Ethane is a key feedstock for the petrochemical industry, which is used for the production of plastics and chemicals.

Under the MoU, GAIL and Shell will jointly explore opportunities for the sourcing and marketing of ethane, including the possibility of importing ethane from the US to India. The collaboration is expected to bring together GAIL's expertise in sourcing and marketing natural gas and Shell's experience in liquefied natural gas (LNG) trading.

The MoU is a significant step towards India's goal of becoming a hub for the petrochemical industry. It is expected to create new opportunities for Indian companies in the global petrochemical market and help the country in reducing its dependence on imports.

The exploration of ethane sourcing from the US is also in line with the government's vision of increasing the share of natural gas in India's energy mix and promoting the use of cleaner fuels. Ethane is a clean-burning fuel that emits lower levels of greenhouse gases compared to other fossil fuels such as coal and oil.

GAIL has been exploring opportunities for the sourcing of ethane from the US for some time. The company has already signed contracts for the supply of LNG from the US, which is expected to commence in the coming years.

The collaboration with Shell is expected to provide GAIL with access to new markets and enable the company to expand its portfolio of products and services. It is also expected to contribute to the development of the Indian petrochemical industry and create new job opportunities in the country.

In conclusion, the MoU signed between GAIL and Shell for the exploration of ethane sourcing is a positive development for India's petrochemical industry. The collaboration is expected to bring together the expertise of both companies and create new opportunities for the Indian market. It is also in line with the government's vision of promoting the use of cleaner fuels and reducing the country's dependence on imports.