SAIL signs LNG pact with Gail

Steel Authority of India (SAIL) signed an agreement with Gail (India) for supply of 3.56 million cubic metre LNG per day to its plants - making it the first steel producer in the country to opt for gas as an alternative to coking coal.

The heads of agreement (HoA) signed by the two companies envisage supply of natural gas in 2006-07 to various steel plants, according to a joint press release issued today.

"The gas would be supplied through the proposed Rs 2,700 crore Jagdishpur-Haldia pipeline of Gail," the release said.

The gas requirement of SAIL has been estaimated keeping in mind the needs of Bhilai Steel Plant (0.913 MMSCMD), Durgapur Steel Plant (1.156 MMSCMD), Rourkela Steel Plant (0.427 MMSCMD) and Bokaro Steel Plant (1.067 MMSCMD).

The agreement was signed on behalf of Gail by R Suresh, executive director (marketing) and V Shyamsundar, executive director (corporate planning) of SAIL in the presence of GAIL CMD Proshanto Banerjee and SAIL chairman V S Jain.