New Delhi: In a move to address India’s growing demand for ethane, a key petrochemical feedstock, state-owned GAIL (India) Limited (GAIL) has signed a tripartite Memorandum of Understanding (MoU) with Oil and Natural Gas Corporation (ONGC) and Shell Energy India (SEI), reported The Hindubusiness Line.
The MoU also encompasses the advancement of evacuation infrastructure at the Shell Energy Terminal in Hazira.
In a previous development, GAIL had entered into a bilateral MoU with SEI, aiming to explore opportunities in various facets of energy cooperation. As part of this, a feasibility study, conducted by a reputable consultant, examined the potential for developing ethane import infrastructure within the existing SEI terminal, as highlighted by GAIL.
ONGC, having a bilateral MoU with GAIL for the import and handling of hydrocarbons, has collaborated with both GAIL and SEI due to the rising ethane requirements in India and the proposed development of ethane infrastructure.
Rajeev Kumar Singhal, GAIL’s Director of Business Development, emphasized the growing significance of ethane as a preferred petrochemical precursor in India. He stated that concrete strategies are being developed to import ethane to meet the demands of domestic petrochemical plants.
Ashok Kumar, ONGC Group General Manager and Head of Petrochemicals underlined ethane as the future fuel for the Indian petrochemical industry. Kumar highlighted the crucial role of making viable and affordable ethane available to support India’s expanding petrochemical capacities.
The MoU specifically outlines collaboration with a clear focus on developing ethane import facilities, conducting a gap assessment in the existing Shell Hazira Terminal facilities, and utilizing the current pipeline routes and facilities. The signed MoU aims to enhance efficiency and facilitate swift progress for the shared project by leveraging the collective strengths of all three parties.
