Gail are looking to site an ethane cracker near an LNG plant such as this one to ramp up ethylene production. (Photo by Sanjit Das/Bloomberg via Getty Images)

Indian natural gas company Gail plans to construct a $4.89bn ethane cracker near the site of its liquefied natural gas (LNG) plant on the country’s west coast.

India’s state-owned gas supplier will look to produce 1.5 million tonnes per year of ethylene, which is the base for a number of vital industrial and commercial resources such as many plastics. 

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Cracking takes ethane, a common hydrocarbon found in natural gas, and processes it via heat into ethylene. The process is highly pollutant, producing ethane-based smog and pollutant air particulates.

The proposed cracking plant could also process liquefied petroleum gas (LPG at levels up to 40%.  LPG cracking is less expensive than ethane cracking alone, although it yields less ethylene.

A source revealed to Reuters: “We are trying to sort out challenges around acquiring land, most likely, in or around Dabhol. […] We hope to receive financial support from the state government.” The source also indicated that Gail plans to import the ethane from the US, increasing emissions across the process.

See Also:

Dabhol, a coastal region of Maharashtra state, already hosts a 5 million tonnes-per-year LNG plant. The company is also considering an area in neighbouring Madhya Pradesh as a second-choice alternative.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Earlier in May, it was reported that the Indian government was considering an investment into three major oil marketing companies in the country. In November, Indian Oil Corp (IOC) research estimated that demand for petrochemicals in the country could as much as triple by 2040. The executive director of IOC, AS Sahney, pointed to population growth and economic development as key drivers for the increase in petrochemical dependence. India consumes between 25 and 30 million tonnes of petrochemicals per year.