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BPCL and GAIL Sign historic agreement powering petrochemical revolution in India

BPCL and GAIL, two prominent Indian companies, have signed a groundbreaking 15 year collaboration agreement, valued at over Rs 63,000 crore, to supply 600 KTPA of Propane for GAILs Usar PDH PP project in Usar, Maharashtra.

This ground breaking collaboration between BPCL and GAIL stands as a testament to their dedication to driving India's petrochemical progress.

New Delhi, November 1, 2023 – 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, today at Delhi.

The 15-year supply contract, estimated at a value of over Rs 63,000 crore, 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 pp dehydrogenation (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 tonnes by 2025, up from 4.9 million tonnes in 2020.

This ground breaking collaboration between BPCL and GAIL stands as a testament to their dedication to driving India's petrochemical progress. It is not only a significant milestone for both organisations but also a momentous leap forward for the nation's thriving petrochemical sector.