India’s state-owned steel producer Steel Authority of India Limited (SAIL) has signed a long-term natural gas supply agreement with GAIL India Limited to support the expansion of its IISCO Steel Plant in West Bengal, the company announced on January 20.
Under the agreement, which will take effect from November 2027 and run for five years, GAIL will supply natural gas to the IISCO Steel Plant, ensuring access to a reliable and cleaner energy source for operations.
The gas supply deal is designed to support SAIL’s ongoing $5 billion expansion project at its Burnpur facility, where the company is building a new 4.6 million mt integrated steel mill. Once completed, the project will raise IISCO’s total installed capacity to 7.1 million mt per year.
According to SAIL, securing long-term natural gas supplies will help improve operational efficiency, enhance process stability, and support the commissioning of new units under its expansion roadmap. The use of natural gas is also expected to reduce carbon emissions compared with conventional fuels, aligning with SAIL’s strategy to advance low-carbon and environmentally sustainable steelmaking.
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