GAIL and Shell reach an agreement to discuss ethane supply
POWER & RENEWABLE ENERGY

GAIL and Shell reach an agreement to discuss ethane supply

The largest gas utility in India, GAIL, announced that it has reached a deal with Shell Energy India to investigate potential for ethane sourcing and other aspects of the energy value chain. To replace natural gas and naphtha as the feedstock at petrochemical plants, GAIL intends to import ethane from the US.

GAIL said in a statement that it and Shell Energy India had inked an agreement to "examine prospects for infrastructure development for ethane sourcing."

GAIL published a tender last month to contract a VLEC (very large ethane carrier) for 20 years beginning in the middle of 2026 to import ethane from the US.

The ship, which can carry between 80,000 and 99,000 cubic metres of ethane, is intended to transport it from the US ports of Marcus Hook, Nederland, Morgan's Point, or Beaumont to Dahej, Hazira, or Dabhol in Gujarat or Maharashtra.

GAIL operates a petrochemical factory at Pata, near Kanpur in Uttar Pradesh, and is also looking to set up another one at Usar in Maharashtra.

Because the government shifted gas supplies from the plant to municipal gas suppliers, the firm had to reduce operation rate at Pata. This had an effect on its profitability, thus the company is now exploring to add ethane as a feedstock supplement.

Also read:
Government to fund green energy conversion of state-run refineries
Powergrid will issue bonds to raise up to Rs 9 billion


The largest gas utility in India, GAIL, announced that it has reached a deal with Shell Energy India to investigate potential for ethane sourcing and other aspects of the energy value chain. To replace natural gas and naphtha as the feedstock at petrochemical plants, GAIL intends to import ethane from the US. GAIL said in a statement that it and Shell Energy India had inked an agreement to examine prospects for infrastructure development for ethane sourcing. GAIL published a tender last month to contract a VLEC (very large ethane carrier) for 20 years beginning in the middle of 2026 to import ethane from the US. The ship, which can carry between 80,000 and 99,000 cubic metres of ethane, is intended to transport it from the US ports of Marcus Hook, Nederland, Morgan's Point, or Beaumont to Dahej, Hazira, or Dabhol in Gujarat or Maharashtra. GAIL operates a petrochemical factory at Pata, near Kanpur in Uttar Pradesh, and is also looking to set up another one at Usar in Maharashtra. Because the government shifted gas supplies from the plant to municipal gas suppliers, the firm had to reduce operation rate at Pata. This had an effect on its profitability, thus the company is now exploring to add ethane as a feedstock supplement. Also read: Government to fund green energy conversion of state-run refineries Powergrid will issue bonds to raise up to Rs 9 billion

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement