GAIL, Shell to explore scope for ethane sourcing infra development

GAIL (India) and Shell Energy India have signed a memorandum of understanding (MoU) to study opportunities in various aspects of the energy value chain.

For GAIL, the MOU is said to be a step towards achieving improved sustenance in business operations.

In an effort to diversify the feedstock used in its petrochemical plant, GAIL is planning to purchase ethane from ethane-surplus countries that have matured export terminal infrastructure using transport by water to India and further transport through the company’s pipeline systems to demand centers.

The MoU is designed to examine possibilities in the import and handling of various hydrocarbons that are key precursors to petrochemicals and chemical reactions, LNG for road transportation, and regasification of imported liquefied natural gas (LNG) as well as renewable energy, among other things.