Bharat Petroleum Corporation Limited (BPCL) shares surged to ₹360.90 following the announcement of a game-changing 15-year propane supply contract valued at ₹63,000 crore.
This significant deal entails the supply of propane to GAIL’s petrochemical plant in Maharashtra from BPCL’s expanded Uran LPG import facility.
The expansion of the Uran facility, increasing its capacity from 1 MMTPA to 3 MMTPA, is a crucial development to accommodate this substantial contract.
This expansion aligns perfectly with GAIL’s ambitious plans for its first propane dehydrogenation-polypropylene (PDH-PP) project in Usar, set to commence operations in 2025.
The PDH-PP project, boasting a capacity of 500 KTPA, integrates propylene production and an equivalent polypropylene plant, signaling a significant leap in GAIL’s capabilities.
Surprisingly, this surge in BPCL’s share prices occurred amidst GAIL reporting a decline in revenue, which fell to ₹33,050 crore this week.
However, the company’s Q2 net profit showcased a remarkable increase, rising by 87% YoY and 36% sequentially to ₹2,442 crore, compared to the previous quarter’s ₹1,793 crore.
As of 12:26 pm, BPCL shares continued their upward trajectory, trading at ₹360.85, reflecting a 1.11% increase.
