GAIL, ONGC, and SEI Join Forces to Explore Ethane Import Opportunities in Hazira

11 Mar 2024 , 11:38 AM

GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC), and Shell Energy India (SEI) Private Limited recently signed a tripartite memorandum of understanding (MoU).

The agreement aims to explore opportunities for importing ethane and other hydrocarbons, along with the development of evacuation infrastructure at the Shell Energy Terminal in Gujarat’s Hazira port.

Prior to this, GAIL and SEI had entered into a bilateral MoU to explore various facets of energy cooperation, leading to a feasibility study on developing ethane import infrastructure in the existing SEI terminal at Hazira.

ONGC, which already has a bilateral MoU with GAIL for various aspects, including importing and handling hydrocarbons, joined forces with GAIL and SEI due to the increasing demand for ethane in India and the proposed development of ethane infrastructure.

Rajeev Kumar Singhal, Director (Business Development) at GAIL, highlighted the significance of ethane as a preferred petrochemical feedstock in India, emphasizing the growing interest in importing ethane for domestic petrochemical plant requirements.

The MoU focuses on cooperation to develop ethane import facilities, assessing gaps in the existing Shell Hazira Terminal facilities, and utilizing existing pipeline routes and facilities.

The signed MoU is expected to enhance efficiency and facilitate rapid progress in the shared project by leveraging the collective strengths of GAIL, ONGC, and SEI.

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