GAIL moves forward with INEOS to revive Mangalore PTA plant

GAIL (India) Limited, through its subsidiary GAIL Mangalore Petrochemicals Limited (GMPL), has re-engaged with INEOS, a global leader in petrochemical manufacturing, to rejuvenate its 1.25 MMTPA Purified Terephthalic Acid (PTA) manufacturing plant in the Special Economic Zone (SEZ) in Mangalore. The collaboration was formalised through an Amendment Agreement signed on November 28, 2024, marking a major milestone in the project’s development.

The PTA plant, initially overseen by JBF Petrochemicals under an agreement with INEOS, faced significant setbacks due to JBF’s insolvency. GAIL acquired the troubled entity through the Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) in June 2023. Since then, GAIL has worked to overcome operational and financial hurdles to restart the plant, aiming to strengthen India’s domestic petrochemical production.

A strategic focus on operational efficiency and market adaptability underpins this renewed partnership. GAIL’s Chairman of GMPL and Director of Human Resources, Ayush Gupta, emphasised that this venture positions GMPL as a key contributor to the Indian PTA market, fostering growth in the country’s petrochemical manufacturing sector. Similarly, R.K. Singhal, GAIL’s Director of Business Development, noted the project’s potential to reduce India’s reliance on PTA imports while bolstering its manufacturing self-sufficiency.

The collaboration with INEOS aligns closely with India’s Atmanirbhar Bharat initiative, which promotes domestic self-reliance. The amended agreement is expected to optimise production capabilities in line with market demands and secure the plant’s long-term viability. INEOS, recognised for its expertise in petrochemicals and speciality chemicals, is expected to play a pivotal role in achieving these objectives.

Once operational, the revived PTA plant will not only address domestic demand but also reduce dependency on imports, thus contributing to India’s foreign exchange savings. This development is set to have a ripple effect across India’s manufacturing and industrial sectors, enhancing competitiveness and innovation.

GAIL’s latest move underscores its commitment to reinforcing India’s petrochemical supply chain and meeting the growing needs of downstream industries. By integrating international expertise from INEOS with its strategic vision, GAIL is setting a benchmark in industrial recovery and growth.