GAIL power to drive SAIL

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.