"BPCL and GAIL Seal ₹63,000-Crore, 15-Year Propane Supply Agreement"

State-owned oil and gas giants, Bharat Petroleum Corporation (BPCL) and Gas Authority of India (GAIL), have joined forces in a groundbreaking 15-year contract for the supply of propane, a crucial petrochemical feedstock.

This monumental 15-year supply pact, estimated to be valued at over Rs. 63,000 crore, solidifies BPCL's commitment to bolstering the Indian petrochemical industry. Under this agreement, BPCL will furnish GAIL with 600 kilo tonnes per annum (KTPA) of propane from its LPG import facility located in Uran. This facility, which is presently equipped to handle 1 million tonnes per annum (MTPA) of LPG imports, is currently undergoing expansion to accommodate 3 MTPA of propane and butane imports. This expansion effort aligns seamlessly with the ever-increasing demands of the Indian petrochemical sector.

The supplied propane will be channeled to GAIL's propane dehydrogenation (PDH)-polypropylene (PP) project situated in Usar, Maharashtra, a groundbreaking initiative for India. The Usar PDH-PP project is set to mark the debut of India's inaugural PDH plant, with operations scheduled to commence in 2025. This innovative unit will feature a capacity of 500 KTPA, integrating propylene production into a PP plant of equal capacity.

This strategic collaboration between BPCL and GAIL perfectly caters to the soaring demand for polypropylene, which is forecasted to surge from 4.9 million tonnes in 2020 to a remarkable 6.3 million tonnes by 2025, reinforcing the pivotal role of these two state-run companies in India's petrochemical landscape."

HBL