GAIL, ONGC & Shell sign pact for ethane import in Gujarat's Hazira

New Delhi: GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC) and Shell Energy India (SEI) Private Limited on Thursday 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 in Gujarat's Hazira port.

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.

ONGC has a bilateral MoU with GAIL for, among other things, importing and handling of hydrocarbon.

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.

Speaking at the event, Rajeev Kumar Singhal, Director (Business Development), GAIL, said, "Ethane has emerged as a preferred petrochemical feedstock 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."

This MoU, among other things, 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.