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BPCL and GAIL Enter Historic Agreement to Transform India’s Petrochemical Sector

Mumbai/New Delhi, November 1, 2023 – In a monumental stride towards reshaping India’s petrochemical landscape, Bharat Petroleum Corporation Limited (BPCL) and GAIL (India) Limited, both esteemed Maharatna companies, have inked an agreement set to revolutionize the nation’s petrochemical industry. This pivotal collaboration, formalized on November 1, 2023, signifies a 15-year commitment to supply Propane, a vital petrochemical feedstock, for GAIL’s Usar PDH-PP project in Usar, Maharashtra.

The signing ceremony, held in Delhi, was graced by the presence of prominent figures including Shri D. V. Mamadapur, Executive Director (LPG) of BPCL, Shri Kamlesh Sharma, ED Marketing Retail of GAIL, along with Shri Sukhmal Jain, Director (Marketing) of BPCL, and Sanjay Kumar, Director (Marketing) of GAIL.

Valued at over Rs 63,000 Crores, the 15-year agreement solidifies BPCL’s commitment to supply GAIL with 600 KTPA of Propane sourced from its LPG import facility situated at Uran. The facility, currently equipped to handle 1 MMTPA of LPG imports, is undergoing expansion to bolster its capacity, aiming to manage 3 MMTPA of propane and butane imports. This expansion showcases BPCL’s steadfast dedication to meeting the escalating demands of India’s burgeoning petrochemical industry.

The strategic location of GAIL’s Usar PDH-PP project in Usar, Maharashtra, marks the genesis of India’s primary propane dehydrogenation (PDH) plant. The PDH unit is set to have a nameplate capacity of 500 KTPA, with seamless integration of propylene production into a polypropylene (PP) plant of equal capacity. This pioneering venture is meticulously aligned with the escalating demand for polypropylene, estimated to surge to 6.3 million tons by 2025 from 4.9 million tons in 2020.

The collaboration between BPCL and GAIL symbolizes their unwavering commitment to drive India’s petrochemical advancements. This milestone not only signifies a significant achievement for both entities but also holds paramount importance for the entirety of India’s petrochemical industry. This historic partnership is poised to redefine the sector’s future trajectory, poised to meet the nation’s increasing petrochemical needs.

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