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Gail may line up Rs 500 billion capex in big petrochemical bet
Gail (India) plans to invest up to ₹500 billion to build a 1.5 million tonnes per annum ethane cracking unit at Sehore, Madhya Pradesh, three officials aware of the development told ET. This is among the biggest proposed capital expenditures by the state-run gas utility.
The new facility is expected to help Gail meet the robust domestic petrochemicals demand, which is expected to nearly triple to $1trillion by 2040.
Ethane is a component of natural gas. An ethane cracker breaks down ethane into ethylene, which is the key chemical input for making plastics, adhesives, synthetic rubber, and other petrochemicals. “Gail is very bullish on the petrochemicals segment. This new facility is still in the planning stage and will almost double Gail’s existing 810 KTA (thousand tonnes per annum)petrochemicals facility in Pata near Kanpur, UP,” said an official aware of the development.
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