GAIL re-partners with Ineos to revive PTA manufacturing plant in Mangalore

GAIL India Limited, through its wholly owned subsidiary GAIL Mangalore Petrochemicals Limited (GMPL), has formalised this new partnership with process licensor INEOS to support the revival of the plant.

This marks a significant step towards the resumption of operations at GMPL’s 1.25 million tonnes/year Purified Terephthalic Acid (PTA) manufacturing plant located in the Mangalore Special Economic Zone (SEZ).

This partnership marks a key development in the efforts to revive production at the PTA plant. The original agreement with INEOS was executed by JBF Petrochemicals (JBF), but could not materialise due to the insolvency proceedings. Following GAIL’s acquisition of JBF through the Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) in June 2023, the company is currently working to overcome the legacy challenges and ensure successful commissioning and long-term operational stability of the plant.

Speaking on the occasion, Ayush Gupta, Chairman, GMPL and Director (HR), GAIL, said, “Through this strategic partnership and repositioning, GAIL aims to position GMPL as a key player in the domestic PTA market while supporting the growth of petrochemical manufacturing in the country.” RK Singhal, Director (Business Development), GAIL, said, “The successful implementation of this project is expected to have a positive impact, reduce the country’s import burden and enhance the manufacturing capabilities of the Indian petrochemical industry.”

The revised agreement signed with INEOS is expected to improve the operational efficiency of the plant, align production capacity with market demand and contribute to the Indian government’s vision of self-reliance under the ‘Atmanirbhar Bharat’ initiative.