India, November 2, 2023 – In a landmark collaboration set to redefine India’s petrochemical landscape, Bharat Petroleum Corporation Limited (BPCL), a Fortune Global 500 Company and a Maharatna company, and GAIL (India) Limited a Maharatna company, have joined forces. On November 1, 2023, a momentous agreement was inked at New Delhi, solidifying a 15-year supply commitment of Propane, a crucial petrochemical feedstock, for GAIL’s Usar PDH-PP project in Usar, Maharashtra.
Shri D. V. Mamadapur, Executive Director (LPG), BPCL and Shri Kamlesh Sharma, ED Marketing Retail, GAIL, signed the agreement, in presence of Shri Sukhmal Jain, Director (Marketing) BPCL and Sanjay Kumar, Director (Marketing), GAIL, today at Delhi.
The 15-year supply contract, estimated at a value of over Rs 63,000 Crores, will see BPCL providing GAIL with 600 KTPA of Propane from its LPG import facility at Uran, which is presently capable of handling 1 MMTPA of LPG imports and is undergoing expansion to accommodate 3 MMTPA of propane and butane imports, reaffirming BPCL’s commitment to meeting the growing needs of the Indian petrochemical industry.
The strategically positioned GAIL’s Usar PDH-PP project in Usar, Maharashtra, represents the inception of India’s inaugural propane ppdehydrogenation (PDH) plant, which is set to commence operations in 2025. The PDH unit will boast a nameplate capacity of 500 KTPA, with propylene production seamlessly integrated into a polypropylene (PP) plant of equal capacity.
This pioneering venture aligns perfectly with the surging demand for polypropylene, which is projected to reach 6.3 million tons by 2025, up from 4.9 million tons in 2020.
This groundbreaking collaboration between BPCL and GAIL stands as a testament to their dedication to driving India’s petrochemical progress. It is not only a significant milestone for both organizations but also a momentous leap forward for the nation’s thriving petrochemical sector.
About Bharat Petroleum Corporation Ltd. (BPCL):
Fortune Global 500 Company, Bharat Petroleum is the second largest Indian Oil Marketing Company and one of the premier integrated energy companies in India, engaged in refining of crude oil and marketing of petroleum products, with a significant presence in the upstream and downstream sectors of the oil and gas industry. The company attained the coveted Maharatna status, joining the elite club of companies having greater operational & financial autonomy.
Bharat Petroleum’s Refineries at Mumbai, Kochi and Bina Refinery have a combined refining capacity of around 35.3 MMTPA. Its marketing infrastructure includes a network of installations, depots, energy stations, aviation service stations and LPG distributors. Its distribution network comprises over 21,000 Energy Stations, over 6,200 LPG distributorships, 525 Lubes distributorships, 123 POL storage locations, 53 LPG Bottling Plants, 70 Aviation Service Stations, 4 Lube blending plants and 4 cross-country pipelines.
Bharat Petroleum is integrating its strategy, investments, environmental and social ambitions to move towards a sustainable planet. The company has chalked out the plan to offer electric vehicle charging stations at around 7000 energy stations over next 5 years.
With a focus on sustainable solutions, the company is developing a vibrant ecosystem and a road-map to become a Net Zero Energy Company by 2040, in Scope 1 and Scope 2 emissions. Bharat Petroleum has been partnering communities by supporting innumerable initiatives connected primarily in the areas of education, water conservation, skill development, health, community development, capacity building and employee volunteering. With ‘Energising Lives’ as its core purpose, Bharat Petroleum’s vision is to be the most admired global energy company leveraging talent, innovation & technology.