GAIL, ONGC, and Shell Ink MoU to Explore Ethanol Import Opportunities

State-owned GAIL (India) announced on Thursday the signing of a tripartite Memorandum of Understanding (MoU) with Oil and Natural Gas Corporation (ONGC) and Shell Energy India (SEI), aimed at delving into opportunities for the import of ethane and other hydrocarbons.

The MoU encompasses the development of evacuation infrastructure at Shell Energy Terminal located at Hazira. Earlier, GAIL had entered into a bilateral MoU with SEI to explore various energy cooperation opportunities. As part of this collaboration, a feasibility study was conducted by a reputed consultant on developing ethane import infrastructure within the existing SEI terminal, GAIL disclosed.

ONGC also has a bilateral MoU with GAIL for importing and handling hydrocarbons. Given the growing demand for ethane in India and the proposed development of ethane infrastructure, the three entities – ONGC, GAIL, and SEI – have come together to pool their resources, according to GAIL.

Rajeev Kumar Singhal, Director (Business Development) of GAIL, highlighted the increasing significance of ethane as a preferred petrochemical precursor in India, emphasizing the need for developing import facilities to meet domestic petrochemical plant requirements.

Ashok Kumar, Group General Manager and Head of Petrochemicals at ONGC, echoed Singhal's sentiments, stating that ethane holds immense potential as the fuel of the future for the Indian petrochemical industry. Kumar emphasized the importance of providing viable and affordable ethane to support India's burgeoning petrochemical capacities.

The MoU outlines cooperation with a clear focus on developing ethane import facilities, conducting gap assessments in existing Shell Hazira Terminal facilities, and utilizing existing pipeline routes and facilities. The agreement aims to expedite the shared project's progress by leveraging the combined strengths of all three parties.

This collaborative effort aligns with the objective of evaluating existing operational infrastructure, ensuring its sufficiency, enhancing operational flexibility, and effectively managing upstream and downstream uncertainties.

Furthermore, the MoU is anticipated to unlock new business opportunities for all parties involved while diversifying petrochemical feedstock. It aligns with the national priorities and the Government of India's Atmanirbhar Bharat (Self Reliant India) mission, emphasizing the importance of domestic manufacturing.

HBL