Indian steelmaker Steel Authority of India Limited (SAIL) has entered into a long-term natural gas supply agreement with state-run gas infrastructure major GAIL India Limited to support the expansion of its IISCO steel mill in India’s eastern state of West Bengal, the company said on Tuesday, January 20.
The agreement will take effect from November 2027 and will remain valid for a period of five years. Under the deal, GAIL will supply natural gas to SAIL’s IISCO Steel Plant, ensuring long-term availability of a reliable and cleaner energy source.
Supporting SAIL’s expansion plans
The partnership is aimed at facilitating SAIL’s major expansion program at its Burnpur facility. The steelmaker has already initiated the implementation of a $5 billion investment project to construct a new 4.6 million mt integrated steel mill at the site of its existing IISCO plant. Once completed, the expansion will raise the plant’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 reliability, and support the commissioning of new facilities planned under the company’s expansion roadmap.
Advancing low-carbon steel production
The use of natural gas is expected to significantly reduce carbon emissions compared to conventional fossil fuels. The agreement is in line with SAIL’s broader strategy to transition toward low-carbon and environmentally sustainable steel production, supporting India’s climate commitments and green manufacturing objectives.
