GAIL to sign pacts with Tata Steel, Vedanta, JSPL for gas supplies

GAIL (India) Ltd will sign pacts with aluminum and steel majors in Odisha for supply of natural gas from December 2019.

The gas major will sign term sheets with companies, including Steel Authority of India Ltd (Rourkela), Tata Steel, Vedanta, Jindal Stainless Ltd, Jindal Steel and Power Ltd (JSPL) and Indian Metal and Ferro Alloys (IMFA).

The memorandums of understanding (MoUs) would be signed on December 17, which coincides with the foundation stone laying ceremony for the new Dhamra-Angul 36-inch main line, and the Bhubaneswar-Cuttack-Paradip 12-inch spur line by Union Petroleum Minister Dharmendra Pradhan.

“Our marketing team has identified 11 industries for supply of natural gas. We will sign the MoUs on the occasion. Together, 1.2 million standard cubic meters a day (mmscmd) gas will be supplied to these industries”, said Ashutosh Karnatak, director (projects), GAIL. This will enable the switch to cleaner, safer, convenient, and economical fuel, he added.

Dhamra-Angul 36-inch main line is part of the 2655-km Jagdishpur-Haldia and Bokaro-Dhamra Natural Gas Pipeline (JHBDL), popularly known as the Pradhan Mantri Urja Ganga.In Odisha, the natural gas pipeline will be constructed at an estimated investment of ~4,000 crore, and will be 769-km long covering 13 districts.

On December 16, Pradhan will inaugurate two CNG stations in Bhubaneswar. Over the coming years, 25 CNG stations will be commissioned in the twin cities of Bhubnaneswar and Cuttack to supply CNG to vehicles.

Initially, the natural gas will reach Bhubaneswar through special containers, which be transported by road from Vijaywada. Later, natural gas will be supplied from the pipeline.

“In Bhubaneswar the creation of network for supply of gas will see an investment of ~500 crore”, Karnatak added.