GAIL signs MoU with Shell Energy India to explore ethane sourcing

GAIL (India) has signed a Memorandum of Understanding (MoU) with Shell Energy India to explore opportunities in different facets of the energy value chain. For GAIL, this is a step towards improved business support.

In an attempt to diversify the feedstock for its petrochemical plant, GAIL intends to import ethane from ethane-surplus countries with mature export terminal infrastructure to India by waterway transport and onward transport through GAIL’s pipeline systems to demand centers.

According to a statement by GAIL, the MoU plans to explore prospects in importing and handling various hydrocarbons, which are important chemical and petrochemical precursors, LNG for road transport, regasification of imported LNG, renewable energy, etc.

GAIL (India) is India’s leading natural gas company with diversified interests along the natural gas value chain of trading, transportation, LPG production and transmission, gasification, petrochemical, town gas etc. According to a statement, the company owns and operates a network of approximately 14,830 km of natural gas pipelines , which span the length and breadth of the country.

It is also working on running several pipeline projects concurrently to further improve distribution. GAIL has a market share of approximately 68 percent in gas transmission and a gas trading share of over 53 percent in India. GAIL and its subsidiaries/joint ventures also have a significant market share in town gas distribution. In the Liquefied Natural Gas (LNG) market, GAIL has a sizeable portfolio. GAIL is also expanding its presence in renewable energies such as solar, wind and biofuel.

“For GAIL, this is a step towards enhanced business operations support,” the statement said. “In an attempt to diversify the feedstock for its petrochemical plant, GAIL intends to import ethane from ethane-surplus countries with mature export terminal infrastructure to India through transportation by waterway and onward transport through GAIL’s pipeline systems to demand centers,” it added added. YEARS

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