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

MoUs would be signed on the occasion of the laying of foundation stone for new Dhamra-Angul 36 inch main line

GAIL (India) Ltd will enter into 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 (Kalinganagar), Vedanta (Jharsuguda), Jindal Stainless Ltd (JSL), Jindal Steel and Power Ltd (JSPL) and Indian Metal and Ferro Alloys (IMFA).

The memorandum of understanding (MoUs) with the companies would be signed on the occasion of the laying of foundation stone for new Dhamra-Angul 36 inch main line and Bhubaneswar-Cuttack-Paradip 12 inch spur line on December 17 by Dharmendra Pradhan, Union minister of petroleum & natural gas and skill development & entrepreneurship.

"Our marketing team has identified 11 industries for the 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 (India) Ltd.

This will enable the switch to cleaner, safer, convenient, economical and happy 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 Rs 4000 crore and will have a length of the 769-km 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 Bhubaneswar and Cuttack to supply CNG to vehicles.

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

"In Bhubaneswar the creation of network for supply of gas will see an investment of Rs 500 crore", Karnatak added.