The agreement will enter into force in November 2027 and will be valid for five years. Under the agreement, GAIL will supply natural gas to the IISCO SAIL steel mill, ensuring the long-term availability of a reliable and cleaner energy source.
Support for SAIL expansion plans
The partnership aims to facilitate SAIL's major expansion program at its Bernpur facility. The steelmaker has already initiated a $5 billion investment project to build a new integrated steel mill with a capacity of 4.6 million tons at the site of its existing IISCO plant. After the expansion is completed, the total installed capacity of the plant will grow to 7.1 million tons per year.
According to SAIL, ensuring long-term natural gas supplies will help improve operational efficiency, improve process reliability, and support the commissioning of new facilities planned as part of the company's expansion roadmap.
Low carbon steel production development
The use of natural gas is expected to significantly reduce carbon emissions compared to conventional fossil fuels. The agreement is consistent with SAIL's broader strategy for
