To cater to the increasing domestic demand for ethylene GAIL (India) Limited looking to expansion of its ethylene production facility in Maharashtra, India

India: To meet the evolving customer needs, GAIL (India) Ltd., the top gas supplier in the nation, intends to construct an ethane cracker near its liquefied natural gas (LNG) import plant in Western India to satisfy an anticipated increase in demand. As the demand for products like plastics, paints, and adhesives rises because of the rising economy, Indian businesses are increasing their petrochemical manufacturing capacity. Ethylene is produced by a cracker and is necessary polyethylene which is useful for plastic products. One of the sources told Reuters that GAIL is searching for property in the coastal area of Dabhol in Maharashtra state for the 1.5 million tonnes per year (mtpa) cracker project to produce ethylene. A 5 mtpa LNG plant is run by GAIL at Dabhol.

Sources from Gail (India) Limited, stated “We are trying to sort out challenges around acquiring land, most likely, in or around Dabhol …We are hoping to receive financial support from the state government. Further, the source stated that GAIL is also exploring the possibility to acquire land in Madhya Pradesh, which neighbors Maharashtra if a deal in Dabhol doesn’t materialize. The proposed dual-feed cracker will also have the capability to crack up to 40% liquefied petroleum gas (LPG), enabling the option to switch to less expensive feedstock to maximize margins. India’s per capita petrochemical consumption is about one-third of the global average. Asia’s third-largest economy annually consumes 25 million to 30 million tonnes of petrochemicals.

According to TechSci Research, India Ethylene market is in deficit with demand, the total production of ethylene in India is less than the total demand of ethylene and its downstream products. GAIL is a key player in the nation's petrochemical industry and makes a substantial contribution to the country's economic expansion and industrial advancement. Several industries, including plastics, textiles, automotive, healthcare, and packaging, are built on the foundation of ethylene, a crucial building component in the manufacturing of numerous chemicals and polymers. The ethylene sector in India has expanded significantly over the years because of rising domestic demand, supportive government policies, and infrastructure expenditures. The ethylene industry in India is dominated by several well-known corporations. With its sizable Jamnagar complex in Gujarat, Reliance Industries Limited is a major player in the Indian petrochemical industry and a substantial producer of ethylene. Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) are additional significant participants. These businesses have invested a lot of money into developing their ethylene production capabilities and petrochemical networks.