Tata Steel Mining signs MoU with BPCL to get LNG for Odisha plant

In a bid to secure long-term supplies of LNG to its ferroalloy plant located at Jajpur in Odisha, Tata Steel Mining Limited (TSML) has signed a Memorandum of Understanding with Bharat Petroleum Corporation Limited (BPCL).

As per the Memorandum of Understanding signed here on Thursday, PSU BPCL Central will supply the agreed amount of natural gas through its own pipeline to the ferroalloy plant at Jajpur, TSML, a 100 percent subsidiary of Tata Steel, said in a statement.

She said the agreement is part of TSML’s sustainability initiatives and will help the company significantly reduce its carbon footprint as it will allow it to produce ferroalloys using cleaner LNG fuel instead of furnace oil.

Pankaj Satja, Managing Director, TSML said: “Our partnership with BPCL will ensure a steady supply of LNG to the ferroalloy plant in Jajpur. This MoU is in line with our commitment to decarbonization and our sustainability plan.

We are delighted to partner with Tata Steel Mining and provide them with natural gas for their operations, enabling us to move closer to the decarbonisation goal,” said Rouf Khan, President (GAS), East, BPCL.

The move helps reduce the carbon footprint of Odisha, said Hemant Sharma, the coastal state’s industries minister.

TSML recently signed an agreement with GAIL (India) Limited to supply natural gas to its ferroalloy plant at Athgarh, Cuttack, to replace furnace oil with cleaner fuel.