VSP plans to expand capacity on assurance of natural gas
As reported by SteelOrbis earlier this month, Visakhapatnam Steel Plant (VSP) recently began implementing the first phase of its planned mega-expansion project. And now it appears that VSP's plans may get a further boost in its capacity expansion plans as it may soon get a guaranteed supply of natural gas. At a recent meeting held in New Delhi, the Petroleum Ministry is said to have given an indication that VSP will receive the requisite supply of 1.5 million cubic metres of natural gas by the end of 2007.
VSP Steel had earlier planned to increase its liquid steel capacity from 3.4 million tons to 5 million tons by the end of 2007 by using natural gas available from the K-G Basin. However, due to uncertainties over the gas supply, the company was forced to ask its consultant to prepare an alternate plan.
VSP is now said to be considering signing a Memorandum of Understanding (MoU) with the Peteroleum and Natural Gas Mininstry of
India (GAIL) regarding a proposal to construct a pipeline connecting VSP's steel works to the K-G Basin.
Moreover, according to company sources from VSP, the meeting with the Petroleum Ministry has reduced the gas supply uncertainties to a great extent.