New Delhi
GAIL (India) Limited announced a major milestone on Friday as its City Gas Distribution (CGD) network in East Singhbhum signed a Gas Sales Agreement (GSA) with Tata Steel Ltd. This is the first time GAIL has onboarded such a large industrial customer across all its CGD operations, which include Varanasi, Patna, Ranchi, East Singhbhum, Cuttack, and Khordha.
Under the agreement, Tata Steel’s Combi-Mill plant in Jamshedpur will initially receive 31,000 standard cubic meters per day (SCMD) of natural gas. The supply will later rise to 43,000 SCMD. Officials said the deal highlights how cleaner fuels can support large-scale industrial operations, boosting sustainability in Jharkhand’s industrial sector.
In a statement, GAIL said the agreement demonstrates its readiness to provide efficient, cleaner energy to India’s industries, furthering the nation’s energy transition journey.
India’s gas sector has expanded rapidly in the last decade. Piped Natural Gas (PNG) connections grew nearly sixfold, from 0.254 crore in 2014 to 1.47 crore in 2025, according to a PIB report. Compressed Natural Gas (CNG) stations increased more than tenfold, from 738 in 2014 to 7,720 this year. CGD networks also expanded from 53 to 307 geographical areas, now covering nearly 100 percent of the population and area.
Operational natural gas pipelines rose from 15,340 km in 2014 to 25,124 km in 2025. LNG terminals doubled from four to eight, while capacity jumped from 22 MMTPA to 52.7 MMTPA. Ethanol blending also advanced significantly, reaching 18.5 percent in 2025 compared to just 1.53 percent in 2014.
This deal with Tata Steel, GAIL noted, adds momentum to India’s clean energy future.
