BPCL and GAIL Ink 15-Year Propane Supply Agreement for GAIL's PDH-PP Plant
Bharat Petroleum Corporation Ltd (BPCL) and GAIL (India) have signed a 15-year contract for the supply of 600 KTPA of propane from BPCL's LPG facility to GAIL's PDH-PP Plant in Usar, Maharashtra. The agreement is valued at Rs 63,000 crore.
Bharat Petroleum Corporation Ltd (BPCL) and GAIL (India) have formalized a significant agreement to supply propane for a 15-year period to GAIL's PDH-PP (Propane Dehydrogenation and Polypropylene) Plant project situated in Usar, Maharashtra.
Under this 15-year supply contract, BPCL will furnish GAIL with 600 KTPA (Thousand Metric Tons Per Annum) of propane from its LPG facility located at Uran. The estimated value of this contract is Rs 63,000 crore.
BPCL's LPG facility at Uran has the capacity to manage 1 MMPTA (Million Metric Tons Per Annum) of LPG imports. Furthermore, the company is in the process of expanding this facility to accommodate 3 MMTPA of propane and butane imports, as per their statement.
The demand for polypropylene is anticipated to increase, with a projected demand of 6.3 million tons by 2025, compared to 4.9 million tons in 2020.
GAIL's Usar plant is scheduled to commence operations in 2025 and is expected to possess a capacity of 500 KTPA, with integrated propylene production for a polypropylene (PP) plant of equivalent capacity.
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