May 24, 2024 [Hydrocarbon Processing]- GAIL India plans to invest $6 B in a new 1.5-MMtpy ethane cracking unit in Sehore, Madhya Pradesh, India.

Gail (India) is set to revolutionize India’s petrochemical landscape with its ambitious investment plan of $6 B to build a 1.5-MMtpy ethane cracking unit in Sehore, Madhya Pradesh, India. This move comes as a strategic response to the surging domestic demand for petrochemicals, forecasted to reach $1 T by 2040.

The ethane cracking process, which transforms natural gas into ethylene, will play a pivotal role in producing essential materials like plastics, adhesives and synthetic rubber. Additionally, this initiative will nearly double Gail’s existing petrochemical capacity at its Pata facility in Uttar Pradesh.

The decision to choose Madhya Pradesh over Maharashtra underscores Gail’s strategic vision for optimal operational efficiency. Moreover, Bharat Petroleum Corp’s parallel investment in an ethane-fed cracker at its Bina refinery further signifies the industry’s collective efforts to enhance feedstock availability, boost polymer production and mitigate environmental impact.

With Engineers India Ltd spearheading the detailed feasibility report, the project is slated to commence operations within the next 5 yr-6 yr, heralding a new era of growth and sustainability in India’s petrochemical sector.

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