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BPCL and GAIL sign long-term gas supply deal
Indian oil and gas companies Bharat Petroleum Corporation Limited (BPCL) and Gas Authority of India Limited (GAIL) have signed a long-term gas supply agreement.
Under the agreement, which is valued at Rs630bn ($7.56bn), BPCL will supply propane to GAIL’s petrochemical facility in Usar.
BPCL will deliver 600ktpa of propane, a feedstock for petrochemicals, from its liquified petroleum gas import facility at Uran.
As part of its efforts to meet the rising demand of the petrochemical
Industry , BPCL is expanding its Uran liquefied natural gas facility to handle three million tons per annum (mtpa) of propane and butane imports from the current capacity of 1mtpa.
With operations scheduled to begin in 2025, GAIL’s propane dehydrogenation (PDH)-polypropylene project in Usar is India’s first propane PDH facility.
The PDH facility will have a nameplate capacity of 500ktpa, with propylene production integrated into a polypropylene plant of similar capacity.
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