GAIL India has signed a tripartite MoU with ONGC and Shell Energy India to explore opportunities for importing ethane and other hydrocarbons. The agreement encompasses the development of evacuation infrastructure at the Shell Energy Terminal in Hazira.
Previously, GAIL had entered a bilateral MoU with SEI to investigate various energy cooperation avenues. This included conducting a feasibility study, led by a reputable consultant, on the development of ethane import infrastructure within the existing SEI terminal.
ONGC also holds a bilateral MoU with GAIL for the importation and handling of hydrocarbons. With the growing demand for ethane in India and the proposed development of ethane infrastructure, the collaboration between ONGC, GAIL, and SEI has been initiated, according to GAIL.
Rajeev Kumar Singhal, Director, Business Development, GAIL, held, “Ethane has emerged as a preferred petrochemical precursor in India, and the development of its import facilities has gained significant momentum. Concrete plans are underway to import ethane to meet domestic petrochemical plant requirements.”
Ashok Kumar, GGM & Head of Petrochemicals at ONGC, emphasized that ethane is poised to become the primary feedstock for the Indian petrochemical industry. With India expanding its petrochemical capacities, ensuring the availability of viable and affordable ethane is crucial for future plans.
GAIL believes that the cooperation has a clear focus on developing ethane import facilities, conducting gap assessments in existing Shell Hazira Terminal facilities, and utilizing existing pipeline routes and facilities. By leveraging the combined strengths of all three parties, the MoU aims to promote efficiency and expedite the progress of the shared project.
This initiative aligns with the objective of assessing existing operational infrastructure, ensuring sufficiency, operational flexibility, and effective management of upstream and downstream uncertainties.
The MoU is expected to create new business opportunities for all parties including GAIL, while also diversifying petrochemical feedstock.
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