Shares of GAIL India edged higher in the afternoon session on March 17 after the company signed MoU with Shell Energy India for hydrocarbon imports.
India's largest gas utility firm on Friday said it has signed an agreement with Shell Energy India Pvt Ltd to explore ethane sourcing and other opportunities along the energy value chain. GAIL is planning to import ethane from the US to replace natural gas and naphtha as feedstock at petrochemical plants.
GAIL last month floated a tender to hire a very large ethane carrier (VLEC) for 20 years starting mid-2026 for importing ethane from the US. The ship with capacity of 80,000 to 99,000 cubic metres is targeted to take deliveries from the US ports of Marcus Hook, Nederland, Morgan's Point or Beaumont and deliver ethane at Dahej or Hazira in Gujarat or Dabhol in Maharashtra.
"For GAIL, this is a step towards achieving improved sustenance in business operations," the statement said on MoU signing with Shell Energy India.
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"In a bid towards diversification of the feedstock for its petrochemical plant, GAIL is looking to import ethane from ethane-surplus countries with matured export terminal infrastructure through water-borne transportation to India and transport it further through GAIL's pipeline systems to demand centres."
At 14:00 hrs Bharat Electronics was quoting at Rs 94.03, up Rs 2.38, or 2.60 percent on BSE. It has touched an intraday high of Rs 94.67 and an intraday low of Rs 93.14.
GAIL is India's largest natural gas company. It owns and operates a network of around 14,830 kilometres of natural gas pipelines spread across the length and breadth of the country. It commands around 68 per cent market share in gas transmission and sells 53 per cent of all gas sold in the country.