Ethane Cracker

GAIL India, a leading gas supplier, plans to construct a Rs 40,000 crore ethane cracker unit close to its liquefied natural gas (LNG) import facility at Dabhol in Maharashtra. According to the company sources the exact location has not yet finalised.

The company expects the demand for petrochemicals to increase in the coming years from industries like plastics, paints, and adhesives. Industry experts too predict that petrochemical demand in India could nearly triple by 2040.

GAIL intends to import ethane for the proposed 1.5 million tonnes per annum (mtpa) cracker project from the United States. The proposed dual-feed cracker will have the ability to process up to 40% liquefied petroleum gas (LPG), providing flexibility to switch to more cost-effective feedstocks and optimize margins.

As of April 30, 2023, GAIL is implementing capital expenditure plans totaling Rs 88,800 crore, encompassing fresh investments in the petrochemicals, electricity, and oil & gas pipeline sectors.

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