GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC) and Shell Energy India (SEI) Private Limited signed a tripartite memorandum of understanding (MoU) to explore opportunities for the import of ethane and other hydrocarbons, the companies said in a press release on March 7.
The MoU would also examine the development of evacuation infrastructure at Shell Energy Terminal, Hazira.
“Ethane has emerged as a preferred petrochemical precursor in India and development of its import facilities has gained considerable traction. Definite plans are being formulated to import ethane for domestic petrochemical plant requirements,” said Rajeev Kumar Singhal, Director (Business Development), GAIL.
The companies said the MoU inter-alia includes cooperation with a focus on developing ethane import facilities after gap assessment in existing Shell Hazira Terminal facilities and usage of existing pipeline routes and facilities.
The release stated that the MoU signed envisages fostering efficiency and swift progress of the shared project by leveraging the combined strengths of all three parties.
ONGC Group General Manager & Head Petrochemicals Ashok Kumar said India is adding good petchem capacities, and making available viable and affordable ethane is the key to the plans ahead.
The MoU is expected to offer new business prospects to all the parties along with offering diversification of petrochemical feedstock while aligning with the national priorities and the Indian government’s mission of “Self Reliant India”, the press release added.
GAIL in March 2023 had entered into a bilateral MoU with SEI for scouting opportunities in different facets of energy cooperation, wherein a feasibility study was conducted by a consultant on developing ethane import infrastructure in the existing SEI terminal at Hazira.
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