Karandikars & Associates

7th March 2024

1. GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC) and Shell Energy India (SEI) Private Limited have signed a tripartite Memorandum of Understanding (MoU) to explore opportunities for import of ethane and other hydrocarbons and development of evacuation infrastructure at Shell Energy Terminal, Hazira
2. Earlier, GAIL had entered into a bilateral MoU with SEI for scouting opportunities in different facets of energy cooperation, wherein a feasibility study was conducted by a reputed consultant on developing ethane import infrastructure in the existing SEI terminal at Hazira
3. ONGC has a bilateral MoU with GAIL for, inter alia, importing and handling of hydrocarbon
4. In view of the emergence of ethane requirement in India and proposed development of ethane infrastructure, the three parties ONGC, GAIL and SEI have joined hands
5. GAIL has said, “Ethane has emerged as a preferred petrochemical precursor in India and development of its import facilities have gained considerable traction. Definite plans are being formulated to import ethane for domestic petrochemical plant requirements.”
6. ONGC has said that going forward, ethane is the fuel of the future as feedstock to Indian petrochemical industry. India is adding good petchem capacities and making available viable and affordable ethane is the key for the plans ahead
7. This MoU inter-alia includes cooperation with clear focus for developing ethane import facilities after gap assessment in existing Shell Hazira Terminal facilities and usage of existing pipeline routes and facilities. The MoU signed envisages to foster efficiency and swift progress of the shared project by leveraging the combined strengths of all three parties
8. The move coincides with the objective towards assessment of existing operational infrastructure, ensuring its sufficiency, operational flexibility and effective management of upstream and downstream uncertainties