To overcome fuel supply challenges caused by the West Asia crisis, Rourkela Steel Plant (RSP), a unit of SAIL, has signed a five-year agreement with GAIL for the supply of piped natural gas (PNG).

The move will help ensure a steady and reliable fuel source for critical steel manufacturing operations while strengthening energy security and supporting efficient Steel Procurement and production processes. GAIL will also develop the required pipeline infrastructure to supply PNG directly to the plant.

RSP has been facing propane supply shortages due to disruptions in global supply chains. The plant currently consumes around 180–200 tonnes of propane every month and plans to completely switch to PNG within the next three months. According to officials, PNG is not only more affordable but also safer and cleaner.

The transition is expected to improve energy efficiency, reduce carbon emissions, lower operating costs, and support RSP’s sustainability goals. It will also ensure uninterrupted operations in key facilities such as the oxygen plant and utility services, which play an important role in modern steelmaking.

This initiative follows several proactive measures taken by RSP to manage propane shortages, including the use of alternative fuels and process modifications in its Steel Melting Shop-II. Plant authorities believe that diversifying fuel sources will help protect operations from future geopolitical disruptions while ensuring smooth and sustainable steel production.