GAIL, ONGC, and Shell Energy India sign MoU to enhance India’s energy sector and self-reliance

In a significant move for India‘s energy sector, GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC), and Shell Energy India (SEI) Private Limited have entered into a tripartite Memorandum of Understanding (MoU) with the aim to bolster ethane and other hydrocarbons import and the development of evacuation infrastructure at the Shell Energy Terminal in Hazira. This collaboration marks a pivotal step towards enhancing India’s energy infrastructure and diversifying its petrochemical feedstock in alignment with the nation’s Atmanirbhar Bharat (Self-Reliant India) mission.

The deal’s spotlight shines on the concerted effort to explore opportunities for importing ethane and developing the necessary infrastructure for its evacuation. This initiative not only underscores the commitment of GAIL, ONGC, and SEI towards meeting India’s growing ethane requirements but also reflects their dedication to supporting the country’s burgeoning petrochemical industry. The MoU is set to pave the way for new business prospects, leveraging the combined strengths of the three entities to foster efficiency and swift progress in the shared project.

The signing of this tripartite MoU builds on previous bilateral agreements between the parties, with GAIL and SEI initially focusing on energy cooperation opportunities and ONGC and GAIL exploring hydrocarbon import and handling. The emerging demand for ethane in India, coupled with the proposed development of ethane infrastructure, catalyzed this collaboration. Shri Rajeev Kumar Singhal, GAIL’s Director of Business Development, emphasized the strategic importance of ethane as a petrochemical precursor and outlined definitive plans to import ethane to meet domestic plant requirements. ONGC’s Group General Manager & Head Petrochemicals, Shri Ashok Kumar, echoed this sentiment, highlighting ethane’s role as a future feedstock for the Indian petrochemical industry.

The MoU includes a clear focus on developing ethane import facilities after assessing gaps in the existing SEI terminal facilities at Hazira and utilizing existing pipeline routes. This agreement aims to ensure the operational infrastructure’s sufficiency, flexibility, and effective management of uncertainties. By aligning with national priorities and the Government of India’s Atmanirbhar Bharat mission, this initiative promises to enhance the diversification of petrochemical feedstock and foster self-reliance in manufacturing within India.

This collaboration between GAIL, ONGC, and Shell Energy India represents a significant step forward in strengthening India’s petrochemical infrastructure and its broader energy sector. By focusing on the import and evacuation of ethane, these companies are not only addressing the immediate needs of the industry but also laying the groundwork for future growth and sustainability. This move is aligned with the national mission of Atmanirbhar Bharat and showcases the potential for strategic partnerships to drive progress and innovation in the energy domain.