New Delhi: GAIL (India) Ltd has entered into an agreement with Tata Steel for supply of natural gas to the steel major's Combi-Mill plant in Jamshedpur, a statement said.
As per the agreement, GAIL will supply 31,000 standard cubic metres per day (SCMD) of natural gas until March 2026, with volumes scaling up to 43,000 SCMD thereafter, it said.
Supply to Tata Steel's Combi-Mill plant under the City Gas Distribution project being implemented in East Singhbhum, will commence by the end of this September.
“This agreement represents the largest industrial customer onboarding since the inception of GAIL's City Gas Distribution GAs located in Varanasi, Patna, Ranchi, East Singhbhum, Cuttack and Kordha,” the company said.
To connect the Combi-Mill plant, GAIL has commissioned a 23-km pipeline route, it said.
General Manager and GA in-charge of GAIL, Gauri Shankar Mishra, stated that the collaboration with Tata Steel demonstrates the company’s dedication to providing cost-effective, environmentally sustainable, and operationally convenient energy solutions to India's industrial sector.
GAIL plans to connect additional industrial establishments in the region soon, as part of its broader strategy to expand natural gas infrastructure and promote cleaner energy adoption, he said.
The association is expected to contribute significantly to reducing the carbon footprint of steel production operations, while ensuring reliable energy supply for Tata Steel's manufacturing processes, the statement added.
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