Press Releases

GAIL and BPCL sign agreement for supply of Propane for GAIL’s Petrochemical Plant at Usar

15-year supply commitment to have estimate value of Rs. 63,000 crore

New Delhi, November 1, 2023: In a significant move to secure availability of feedstock for its petrochemicals production, GAIL (India) Limited today signed an agreement with Bharat Petroleum Corporation Limited for 15-year supply of Propane for its upcoming petrochemical plant in Usar, Maharashtra.

The agreement was signed here in the presence of Shri Sukhmal Jain, Director (Marketing), BPCL and Shri Sanjay Kumar, Director (Marketing), GAIL by Shri Kamlesh Sharma, Executive Director (Marketing Retail), GAIL and Shri D. V. Mamadapur, Executive Director (LPG), BPCL .

The 15-year supply contract, estimated at a value of over Rs. 63,000 crore, will see GAIL procuring 600 KTPA of Propane from BPCL’s 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.

The strategically positioned GAIL's PDH-PP project in Usar, Maharashtra, will be India's first propane dehydrogenation (PDH) plant, which is likely 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 tons by 2025, up from 4.9 million tons in 2020.

Caption for attached photograph GAIL_BPCL 1: Signing of agreement between GAIL and BPCL for 15-year supply of Propane. From left to right: Shri Sanjay Kumar, Director (Marketing), GAIL, Shri Kamlesh Sharma, Executive Director (Marketing Retail), GAIL, Shri D. V. Mamadapur, Executive Director (LPG), BPCL and Shri Sukhmal Jain, Director (Marketing), BPCL