New Delhi: State-owned NMDC Limited has signed a Gas Sales Agreement (GSA) with GAIL Gas Limited to secure a dedicated supply of Re-gasified Liquefied Natural Gas (RLNG) for its iron ore pellet plant at Nagarnar in Jagdalpur, Chhattisgarh. The agreement marks a significant step towards cleaner industrial operations, improved process efficiency and sustainable industrial development.
Under the long-term agreement, GAIL Gas will develop the required pipeline connectivity and establish a gas receiving and metering station at Nagarnar to ensure a reliable supply of natural gas to the pellet plant. The expansion of the natural gas pipeline network into the Jagdalpur region is expected to facilitate the transition from furnace oil to a cleaner industrial fuel.
The shift to natural gas is expected to help NMDC reduce emissions while improving operational efficiency, product quality and the long-term cost competitiveness of its pellet operations.
NMDC and GAIL Gas Sign Agreement for Cleaner Energy Supply
The Gas Sales Agreement was signed by G.S.S.V. Suresh, Executive Director (Works) at NMDC, and Mohd. Zafar Khan, Head of Marketing at GAIL Gas Limited.
The signing ceremony was attended by Vinay Kumar, Director (Technical) at NMDC; Vivek Nishant Nath, Director (Commercial) at NMDC; and senior officials from both organisations.
The partnership aims to strengthen energy infrastructure at the Nagarnar facility and support the adoption of cleaner fuel in industrial operations. The development of dedicated pipeline connectivity and a gas receiving and metering station will be crucial to ensuring a dependable natural gas supply for the plant.
Read also: NMDC Explores Strategic Partnerships with Russian Firms in Rare Earth and Critical Minerals
NMDC Highlights Commitment to Sustainable Industrial Growth
NMDC Chairman and Managing Director Amitava Mukherjee described the agreement as an important milestone in the company’s efforts to make its operations cleaner and more sustainable.He said the transition to natural gas at Nagarnar would help substantially reduce emissions while strengthening the efficiency and competitiveness of NMDC’s pellet operations.
According to Mukherjee, the initiative reflects the company’s commitment to combining environmental responsibility with long-term industrial growth. The adoption of natural gas is expected to support more efficient industrial processes while contributing to NMDC’s broader sustainability objectives.
Benefits of Switching from Furnace Oil to Natural Gas
The transition from furnace oil to natural gas is expected to deliver several operational and environmental benefits for NMDC’s Nagarnar pellet plant.
- Lower emissions: Natural gas can help reduce emissions compared with furnace oil, depending on operating conditions and the overall fuel-use system.
- Improved process efficiency: A reliable natural gas supply is expected to support efficient pellet plant operations.
- Better product quality: Improved control over industrial heating processes can contribute to consistent product quality.
- Long-term cost competitiveness: The fuel transition may strengthen the plant’s cost competitiveness, depending on gas prices, infrastructure costs and operating requirements.
- Stronger energy infrastructure: The planned pipeline connectivity and gas receiving and metering station will support reliable fuel delivery to the facility.
The agreement also represents a step towards expanding natural gas infrastructure in the Jagdalpur region, potentially supporting the wider adoption of cleaner industrial energy sources.
About NMDC Limited
NMDC Limited is a Government of India-owned mining company under the Ministry of Steel. It is one of the country’s major iron ore producers and operates across the mining and mineral value chain. The company also focuses on strengthening its operational capabilities and supporting sustainable industrial development.
About GAIL Gas Limited
GAIL Gas Limited is a subsidiary of GAIL (India) Limited, a major public-sector natural gas company. GAIL Gas develops and operates city gas distribution networks and related natural gas infrastructure, supporting the supply and use of natural gas across industrial, commercial and other consumer segments.
Read also: NMDC Signs MoU with Chhattisgarh Government Under PM-SETU to Upgrade ITIs in Bastar
