Using its pipeline, BPCL will deliver the specified amount of natural gas to Tata Steel Mining’s ferroalloys unit in Jajpur.
Tata Steel Mines Ltd. has signed a memorandum of understanding with Bharat Petroleum Corporation Ltd. in an effort to guarantee a steady supply of liquified natural gas for its ferroalloys plant located in Jajpur, Odisha.
According to the MoU inked here on Thursday, the ferroalloys factory at Jajpur would get the agreed-upon amount of natural gas through BPCL’s pipeline, according to TSML, a 100% subsidiary of Tata Steel.
The arrangement, according to the statement, is a component of TSML’s sustainability measures and will help the company drastically reduce its carbon footprint by enabling it to create ferroalloys using LNG, a cleaner fuel than furnace oil.
“Our partnership with BPCL will ensure a steady supply of LNG for our ferro alloys plant in Jajpur. This Memorandum of Understanding is consistent with our commitment to decarbonisation and our sustainability plan,” TSML Managing Director Pankaj Satija said.
Rouf M Khan, head (GAS), east, BPCL said, “We are happy to associate with Tata Steel Mining and supply them natural gas for their operations, enabling us to inch closer towards the goal of decarbonisation.”
According to Odisha’s industries secretary, Hemant Sharma, this action helps the coastal state’s carbon impact.
To replace furnace oil with a cleaner fuel, TSML has signed a contract with GAIL (India) Limited for the supply of natural gas to its ferro alloys factory in Athgarh in Cuttack.
amfnews