Gail may invest up to Rs 50,000 crore in 1.5 million ton capacity ethane cracking plant

22 May 2024 , 09:01 AM

ET has reported that Gail (India) intends to invest up to ₹50,000 crore to construct a 1.5 million tonnes annual ethane cracking complex in Sehore, Madhya Pradesh. This is one of the largest capital projects that the government-owned gas company is proposing.

By 2040, the need for petrochemicals in the United States is predicted to nearly triple to $1 trillion, and the new facility is projected to help Gail satisfy this demand.

 

A part of natural gas is ethane. The primary chemical ingredient needed to make plastics, adhesives, synthetic rubber, and other petrochemicals is ethylene, which is produced by an ethane cracker.

“Gail is quite optimistic about the petrochemicals industry.” ET report cited an official familiar of the situation who stated that the new facility, which is now in the design stages, will nearly quadruple Gail’s current 810 KTA (thousand tonnes per annum) petrochemicals complex in Pata, near Kanpur, UP.

In February of last year, Gail announced its intention to buy ethane from nations with excess ethane and use its pipeline infrastructure to deliver it to demand centres for use as a petrochemical feedstock.

The business and Shell Energy India and the Oil and Natural Gas Corporation (ONGC) inked a tripartite memorandum of understanding (MoU) in March to investigate the possibility of importing ethane and other hydrocarbons. The creation of evacuation facilities at the Shell Energy Terminal in Hazira would also be examined by the MoU.

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