6 November, 2023 13:03:08 IST 
State-run oil and gas majors, Bharat Petroleum Corporation Ltd. (BPCL) and Gas Authority of India Ltd. (GAIL) have signed an agreement for a 15-year supply of propane for GAIL’s upcoming propane dehydrogenation (PDH) and polypropylene (PP) derivatives project at Usar in Maharashtra.
The 15-year supply contract is estimated at a value of over Rs. 63,000-crore. As per the agreement terms, GAIL will procure 600-ktpa of propane from BPCL’s LPG import facility in Uran. This facility currently handles 1-mtpa of LPG imports and is set for an expansion to manage up to 3-mtpa of propane and butane imports.
The agreement was signed in the presence of Mr. Sukhmal Jain, Director (Marketing), BPCL and Mr. Sanjay Kumar, Director (Marketing), GAIL, by Mr. Kamlesh Sharma, Executive Director (Marketing Retail), GAIL and Mr. D.V. Mamadapur, Executive Director (LPG), BPCL.
GAIL’s Usar PDH-PP project in Maharashtra, expected to begin operations in 2025, represents India’s first PDH plant. The PDH unit will have a capacity of 500-ktpa and will be integrated with a PP plant of the same capacity.
