GAIL (India) Limited and Petron Scientech have announced their intention to explore the establishment of a bioethylene plant in India.
What Happened: The two companies signed a Memorandum of Understanding (MoU) on Thursday, August 22, 2024, to investigate the feasibility of this project. The proposed bio-ethylene plant, which is expected to have a capacity of 500 kilotons per Annum (KTA), will be developed in a 50:50 Joint Venture (JV) mode.
The bio-ethylene and its downstream unit(s) will be produced from bio-ethanol generated within the plant. Under the terms of the MoU, both companies will conduct feasibility studies to assess the technical viability and financial prospects of the project. They aim to secure investment approval from their respective management for investment in the project and forming a JV company.
The MoU between GAIL and Petron Scientech comes on the heels of another significant joint venture by GAIL. Earlier in the month, on August 5, GAIL entered into a joint venture agreement with Coal India to establish a Coal to Synthetic Natural Gas (SNG) project at Eastern Coal Field.
Price Action: GAIL’s share price was down 0.11% to trade at ₹235.89 on Thursday afternoon.
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