Shares of GAIL India were trading 3% above on 2 November after the company signed a 15-year supply agreement with BPCL (Bharat Petroleum Corporation Limited) for the supply of propane for its upcoming petrochemical plant in Maharashtra.

The total consideration of this contract is valued at Rs 63,000 crore.

The company will be procuring 600 kilotonnes per annum of propane for BPCL’s LPG import facility in Uran, which is currently capable of handling 1 million metric tonnes per annum (MMTPA) of LPG imports. Moreover, the facility is currently undergoing an expansion to accommodate 3 MMTPA of propane and butane imports.

The company’s propane dehydrogenation-polypropylene project in Usar will be the country’s first propane dehydrogenation plant, which is set to commence its operations in 2025.

The propane dehydrogenation unit will boast a nameplate capacity of 500 kilotonnes per annum, with propylene production seamlessly integrated into a polypropylene plant of equal capacity.

In its quarterly report for the July-September quarter, the company reported an 87% year-on-year (YoY) increase in its consolidated net profit at Rs 2,442 crore from Rs 1,305 crore reported in the same quarter of the previous fiscal year.

However, the revenue from operations saw a dip to Rs 33,050 crore during the quarter under review from Rs 38,729 crore reported in the year-ago quarter.

At 12:00 pm, the shares of GAIL India were trading 2.51% above at Rs 120.50 on NSE.