BPCL and GAIL India Ink 15-Year Supply Contract Worth Over Rs 63,000 Crores

BPCL dealer

In a significant development for India’s petrochemical industry, Bharat Petroleum Corporation (BPCL) and GAIL India have entered into a groundbreaking 15-year supply contract, with an estimated value exceeding Rs 63,000 crores. This strategic partnership aims to meet the burgeoning demand for propane and polypropylene in the country.

Under the terms of the agreement, BPCL will supply 600 thousand metric tonnes per annum (KTPA) of Propane from its LPG import facility located at Uran to GAIL India. GAIL’s Uran facility, already equipped to handle 1 million metric tonnes per annum (MMTPA) of LPG imports, is undergoing expansion to increase its capacity to handle 3 MMTPA of propane and butane imports. This expansion underscores BPCL’s commitment to bolstering India’s petrochemical industry by providing essential raw materials.

One of the most noteworthy aspects of this collaboration is GAIL’s upcoming Usar PDH-PP (Propane Dehydrogenation-Polypropylene) project in Usar, Maharashtra. This project marks the inception of India’s first propane dehydrogenation (PDH) plant, set to commence operations in 2025. The PDH unit boasts a nameplate capacity of 500 KTPA, with seamless integration into a polypropylene (PP) plant of equal capacity.

This pioneering venture aligns perfectly with the surging demand for polypropylene in India, which is projected to reach 6.3 million tons by 2025, up from 4.9 million tons in 2020. The Usar PDH-PP project aims to play a pivotal role in satisfying this growing need and further strengthening India’s position in the global petrochemical market.

The partnership between BPCL and GAIL India not only signifies a major leap forward for the country’s petrochemical sector but also serves as a testament to the commitment of Indian companies towards sustainable growth and self-reliance in the energy and chemical industries. This collaboration is poised to make a substantial impact on India’s economic landscape, boosting its manufacturing capabilities and contributing to the Make in India initiative.