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BPCL and GAIL seal ₹63,000 Crore Propane Supply deal

Nov 2, 2023

By: BlinkX Research Team

Bharat Petroleum Corporation Ltd (BPCL) and GAIL (India) have entered a significant long-term agreement, solidifying their commitment to supply propane for GAIL’s PDH-PP (Propane Dehydrogenation and Polypropylene) Plant project in Usar, Maharashtra. Over the course of 15 years, BPCL will furnish 600 KTPA of propane from its LPG facility at Uran, resulting in a substantial contract valued at approximately ₹63,000 crore.

The LPG facility at BPCL's Uran site is geared to handle 1 MMPTA (million tonnes per annum) of LPG imports. Currently undergoing expansion, it is set to accommodate up to 3 MMTPA of propane and butane imports, according to the company's statement.

Anticipating a surge in demand for polypropylene, which is projected to reach 6.3 million tons by 2025, up from 4.9 million tons in 2020, this strategic partnership is poised to play a pivotal role in meeting the evolving industry requirements.

GAIL's Usar plant is slated to commence operations in 2025, boasting a production capacity of 500 KTPA. It will integrate propylene production within a polypropylene (PP) plant of equal capacity, further augmenting its operational capabilities.