bpcl: Tata Steel Mining inks pact to get LNG for Odisha plant from BPCL

In an attempt to secure long-term supply of liquified natural gas for its ferroalloys plant located in Odisha’s Jajpur, Tata Steel Mining Ltd (TSML) has signed a memorandum of understanding with Bharat Petroleum Corporation Ltd (BPCL). As per the MoU signed here on Thursday, central PSU BPCL will supply the agreed quantity of natural gas through its pipeline to the ferroalloys plant at Jajpur, said TSML, a 100 per cent subsidiary of Tata Steel in a statement.

It said that the agreement is a part of TSML’s sustainability initiatives and it will aid the business in significantly reducing its carbon footprint because it will allow it to produce ferroalloys using cleaner fuel LNG rather than furnace oil.

“Our partnership with BPCL will ensure a steady supply of LNG for our ferro alloys plant in Jajpur. This Memorandum of Understanding is consistent with our commitment to decarbonisation and our sustainability plan,” TSML Managing Director Pankaj Satija said.

Rouf M Khan, Head (GAS), East, BPCL said, “We are happy to associate with Tata Steel Mining and supply them natural gas for their operations, enabling us to inch closer towards the goal of decarbonisation.”

This step help in reducing the carbon footprint in Odisha, said Hemant Sharma, industries secretary of the coastal state.

TSML recently inked a pact with GAIL (India) Limited for the supply of natural gas to its ferro alloys plant at Athgarh in Cuttack to replace furnace oil with cleaner fuel.