BPCL signs 15-year propane supply agreement with GAIL

The demand for polypropylene is projected to reach 6.3 million tons by 2025, up from 4.9 million tons in 2020.

November 2, 2023 04:40 IST

Bharat Petroleum Corporation Ltd, BPCL Q3 results, profit, revenue, EBITDA, margin, petroleum

Bharat Petroleum Corporation Ltd (BPCL) posted a jump of 82.1 per cent in profit for the third quarter of FY24 at Rs 3,181.42 crore.

State-owned Bharat Petroleum Corporation Ltd and GAIL (India) signed an agreement on Wednesday committing to supply propane for 15 years to GAIL’s PDH-PP (Propane Dehydrogenation and Polypropylene) Plant project in Usar, Maharashtra.

BPCL will provide 600 KTPA of propane to GAIL from its LPG facility at Uran under the 15-year supply contract with an estimated value of Rs 63,000 crore.

BPCL’s LPG facility at Uran is capable of handling 1 MMPTA (million tonnes per annum) of LPG imports and is expanding it to accommodate 3 MMTPA of propane and butane imports, the company said in a release.

The demand for polypropylene is projected to reach 6.3 million tons by 2025, up from 4.9 million tons in 2020.

GAIL’s Usar plant will begin it’s operations in the year 2025. The unit is expected to have a capacity of 500 KTPA (kilo tons per annum) with propylene production integrated into a polypropylene (PP) plant of equal capacity.

This article was first uploaded on November two, twenty twenty-three, at forty minutes past four in the morning.