State-run oil and gas companies Bharat Petroleum Corporation (BPCL) and Gas Authority of India (GAIL) inked a 15-year propane supply agreement for GAIL's new petrochemical plant at Usar, Maharashtra, in a significant development that could drastically alter the petrochemical landscape in India.

The projected value of the 15-year supply contract is more than Rs 63,000 crore. GAIL will purchase 600 KTPA of propane from BPCL's LPG import facility in Uran in accordance with the conditions of the agreement. This facility might handle up to 3 MMTPA of propane and butane imports, which presently manages 1 MMTPA of LPG imports.

Kamlesh Sharma, Executive Director (Marketing Retail), GAIL, and D. V. Mamadapur, Executive Director (LPG), BPCL, signed the agreement in the presence of Sukhmal Jain, Director (Marketing), BPCL, and Sanjay Kumar, Director (Marketing), GAIL.

India's first propane pp dehydrogenation (PDH) facility is planned to start operations in 2025 and is part of GAIL's Usar PDH-PP project in Maharashtra. With a 500 KTPA capacity, this PDH unit will be linked with a 500 KTPA polypropylene (PP) facility. By 2025, the nation's polypropylene consumption is expected to rise from 4.9 million tonnes in 2020 to 6.3 million tonnes.