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Rourkela Steel Plant Inks PNG supply Pact with GAIL

CIO Insider Team | Friday, 29 May, 2026
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In response to supply disruptions caused by the West Asia crisis, Rourkela Steel Plant (RSP) of Steel Authority of India Limited (SAIL) is diversifying its energy sources by partnering with Gas Authority of India Limited (GAIL) for piped natural gas (PNG) supply.

According to reports, RSP has entered into a five-year contract with GAIL to guarantee continuous access to an alternative fuel supply for essential steel production activities at the integrated steel facility.

Under the agreement, GAIL will assist in constructing the necessary pipeline infrastructure for supplying PNG to the steel factory. The decision is important as RSP has struggled to obtain propane gas due to supply chain disruptions related to the conflict in West Asia.

The agreement with GAIL will enhance the steel plant's energy security and lower its reliance on propane gas, which is commonly utilized in numerous industrial processes. It will also improve operational dependability and effectiveness in manufacturing.

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Authorities indicated that shifting to natural gas will offer various enduring advantages, such as cleaner fuel application, enhanced energy efficiency, reduced carbon emissions, and improved cost management.

"The steel mill needs between 180 tonnes and 200 tonnes of propane each month." Due to supply limitations, we intend to fully transition to PNG within the next three months. "PNG is less expensive and safer as well," stated Archana Satpathy, PRO of RSP.

Continuous slab cutting and steady feeding of slabs to the finishing mills are crucial for maintaining steel production and preventing interruptions in downstream processes

The action also corresponds with RSP’s larger sustainability and eco-friendly production efforts. Having a reliable and eco-friendly fuel source would greatly enhance operations in the oxygen plant and utility services, essential for contemporary steel production.

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The recent initiative follows several months after RSP implemented emergency actions to address propane shortages resulting from the global crisis. The facility transitioned to acetylene as a substitute fuel for slab-cutting tasks to ensure continuous production.

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With that setup, RSP established a bank of dissolved acetylene cylinders in its steel melting shop-II to run the transverse torch-cutting machine. Continuous slab cutting and steady feeding of slabs to the finishing mills are crucial for maintaining steel production and preventing interruptions in downstream processes.



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