SAIL, GAIL Sign Long-Term Natural Gas Supply Pact

22 Jan 2026 CW Team

State-owned steel major Steel Authority of India Limited has signed a strategic long-term agreement with GAIL (India) Limited for the supply of natural gas, marking an important step towards cleaner and more sustainable steel production in India.

The agreement will come into effect from November 2027 and will remain valid for a period of five years. It is aimed at supporting SAIL’s expansion and modernisation plans, particularly at its Burnpur Steel Plant in West Bengal, while ensuring a reliable and environmentally friendly energy supply.

Under the agreement, GAIL will supply natural gas to meet SAIL’s rising energy requirements stemming from capacity expansion and modernisation initiatives at the Burnpur plant. The availability of long-term gas supplies is expected to improve operational efficiency, enhance process reliability and support the commissioning of new facilities planned under SAIL’s expansion roadmap.

The shift towards greater use of natural gas is also expected to significantly reduce carbon emissions compared with conventional fossil fuels. The agreement aligns with SAIL’s broader strategy to transition to low-carbon and environmentally sustainable steelmaking, in line with India’s climate commitments and green manufacturing objectives.

Natural gas is expected to play a key role in improving energy efficiency, lowering emissions intensity and enabling cleaner steel production processes across SAIL’s operations.

From an energy security perspective, the long-term nature of the agreement provides SAIL with assured fuel supply while offering GAIL a stable demand base. Both companies said the partnership reflects growing collaboration among public sector enterprises to strengthen domestic industrial capabilities and promote sustainable economic growth.

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