GAIL (India) Limited, India’s largest gas producer, on Friday signed a Memorandum of Understanding (MoU) with Shell Energy India Private Limited to explore opportunities in different facets of the energy value chain.
The company said the MoU envisages exploring prospects in the import and handling of different hydrocarbons which are important chemical and petrochemical precursors, LNG for road transport, regasification of imported LNG, renewable and others.
“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,” said GAIL in an exchange filing.
It is to be noted that GAIL is planning to import ethane from the US to replace natural gas and naphtha as feedstock at petrochemical plants. The company, 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.
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.