GAIL power to drive SAIL
Gas Authority of
India Ltd. (GAIL) and Steel Authority of
India Ltd. (
SAIL) put pen to paper on an agreement that will see
SAIL's four integrated steel plants rely on natural gas as their primary fuel instead of
coking coal.
SAIL officials indicated that the rising price of
coking coal prompted the organization to look into alternative means of powering its steel plants. The deal with GAIL will allow
SAIL to reduce its annual
coking coal consumption by nearly one million tons. The use of natural gas brings with it the added bonuses of reducing pollution and operating costs by increasing the productivity of the furnaces.
GAIL will provide
SAIL with natural gas through the 840 km long Jagdishpur-Haldia pipeline. The pipeline is estimated to cost nearly Rupees 27 billion ($620 million), and will carry gas from
Qatar and
Iran.
Upon completion of the project in 2007,
SAIL will become the first steel producer in
India to consume natural gas instead of
coking coal.