GAIL and BPCL ink Rs 630 bn propane deal for Maharashtra project

02 Nov 2023 CW Team

In a significant development expected to reshape India's petrochemical industry, state-run oil and gas companies Bharat Petroleum Corporation (BPCL) and Gas Authority of India (GAIL) entered into an agreement for the 15-year supply of propane to GAIL's upcoming petrochemical plant in Usar, Maharashtra.

The value of the 15-year supply contract is estimated to be over Rs 630 billion. According to the terms of the agreement, GAIL would be procuring 600 KTPA of propane from BPCL's LPG import facility in Uran. Presently, this facility handles 1 MMTPA of LPG imports and is planned for expansion to handle up to 3 MMTPA of propane and butane imports.

The agreement was signed in the presence of Sukhmal Jain, Director (Marketing) at BPCL, and Sanjay Kumar, Director (Marketing) at GAIL, by Kamlesh Sharma, Executive Director (Marketing Retail) at GAIL, and DV Mamadapur, Executive Director (LPG) at BPCL.

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