GAIL Inks Pact With Shell Energy India To Explore Opportunities For Infra Development For Ethane Sourcing

GAIL Inks Pact With Shell Energy India To Explore Opportunities For Infra Development For Ethane Sourcing

by Swarajya Staff - Mar 18, 2023 10:23 AM +05:30 IST
GAIL Inks Pact With Shell Energy India To Explore Opportunities For Infra Development For Ethane SourcingGas pipelines (flickr) (Representative Image)

GAIL (India) Limited, one of the largest state-owned natural gas processing and distribution companies in India, has entered into a Memorandum of Understanding (MoU) with Shell Energy India Private Limited.

The MoU aims to explore opportunities in various aspects of the energy value chain.

GAIL's collaboration with Shell Energy India marks a significant milestone in the company's efforts to improve its business operations.

The partnership will enable GAIL to diversify its petrochemical plant feedstock by importing ethane from ethane-surplus countries with mature export terminal infrastructure.

The company plans to transport the ethane through waterborne transportation to India and further through its pipeline systems to demand centres across the country.

This move towards diversification is expected to improve the sustainability of GAIL's business operations.

The MoU envisions exploring prospects in importing and handling different hydrocarbons that are crucial to the chemical and petrochemical production feedstocks. It also includes exploring opportunities in LNG for road transport, regasification of imported LNG, renewables, and other related areas.

GAIL owns and operates a network of around 14,830 km of natural gas pipelines spread across the length and breadth of country.

The company is also working concurrently on execution of multiple pipeline projects to further enhance the spread.

GAIL is also expanding its presence in renewable energy like solar, wind and biofuel.

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