GAIL looking to set up 'world-scale' greenfield ethane cracker

GAIL (India)

GAIL (India) is exploring the possibility of setting up a “world-scale” ethane cracker, as it looks to strengthen its position as a key player in the petrochemical industry, chairman and managing director Sandeep Kumar Gupta has said.

Speaking at the company’s 40th annual general meeting (AGM) on August 28, Gupta said GAIL is working on a range of product, which will diversify its petrochemical portfolio and also provide robust growth.

The gas distributor had in June announced the plan to set-up an ethane cracker project in Madhya Pradesh with an investment of Rs 60,000 crore.

“GAIL’s 500 KTA PDHPP Project at Usar, 60 KTA Poly-propylene plant at Pata, 1,250 KTA PTA plant at GMPL, Mangaluru and 50 KTA Isopropyl Alcohol (IPA) Project at Usar will diversify and expand GAIL’s existing petrochemical portfolio and provide robust growth in years to come,” he said.

“GAIL is also exploring the feasibility of setting up a world-scale greenfield ethane cracker.”

An ethane cracker separates, or cracks, ethane from natural gas and processes it into ethylene, which is a key component of plastics and other industrial products

Gupta said GAIL signed two long-term liquefied natural gas (LNG) supply agreements to ensure energy security for the country.

India’s largest gas distributer signed a 10-year LNG supply agreements, starting 2026, with Vitol Asia of Singapore and ADNOC Gas of UAE for 1 MMTPA (million metric tonnes per annum) and 0.5 MMTPA, respectively.

It also renewed a contract with Qatar Energy LNG and Petronet LNG Limited (PLL) with volume of 4.5 MMTPA, with supplies commencing in 2028 for a 20-year period.

To improve accessibility of natural gas in remote corners of the country, GAIL has commissioned India’s first two small-scale LNG skids at Vijaipur in Madhya Pradesh, said Gupta.

Skids are modular tank assemblies and equipment mounted on a frame to store or unload LNG, methane, ethane, ethylene, and nitrogen.

“In line with government priorities to bolster the growth of the gas market and improve accessibility throughout the country, small- scale LNG is envisioned to play a pivotal role in fuelling LNG use in transportation, mining, city gas distribution and other sectors,” he added.

GAIL, along with its group companies, is now the largest city gas distributor (CGD) in the country, Gupta said. GAIL group of companies are authorized in 72 geographical areas out of a total of 307, he said.

In the latest CGD round conducted by PNGRB, GAIL group company Tripura Natural Gas Company Limited (TNGCL) secured two areas - Mizoram and Manipur. Its joint venture company Mahanagar Gas Limited (MGL) acquired two geographical areas in Maharashtra and one in Karnataka from a private entity.

In FY24, GAIL along with its group companies added 11.06 lakh PNG connections and 422 CNG stations, adding up to approximately 83.4 lakh PNG customers and 2,770 CNG stations.