In a major development for India’s natural gas sector, GAIL CGD East Singhbhum GA on yesterday signed a landmark Gas Sales Agreement (GSA) with Tata Steel Ltd for the supply of natural gas to the company’s Combi-Mill plant in Jamshedpur. Officials described this as the largest industrial customer onboarding since GAIL rolled out its city gas distribution networks in Varanasi, Patna, Ranchi, East Singhbhum, Cuttack, and Khordha.
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As per the agreement, natural gas supply will begin with 31,000 SCMD (standard cubic meters per day) and is scheduled to rise to 43,000 SCMD in the next phase. The deal will ensure a steady, cleaner energy source for Tata Steel’s operations, reducing dependency on conventional fuels and supporting industrial energy efficiency.
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Industry experts see this as a significant step in accelerating India’s transition to a gas-based economy. The agreement underscores GAIL’s commitment to providing reliable natural gas infrastructure to large industrial consumers and aligns with the government’s goal of increasing the share of natural gas in India’s energy mix to 15% by 2030.
This onboarding is an important milestone for GAIL CGD East Singhbhum, which has been steadily expanding its pipeline network and customer base. The agreement with Tata Steel is expected to act as a catalyst for more industrial customers in the region to shift to natural gas, promoting sustainable and cost-efficient operations.
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