Amid supply disruptions triggered by the West Asia crisis, Rourkela Steel Plant (RSP) of Steel Authority of India Limited (SAIL) has moved to diversify its energy sources by collaborating with Gas Authority of India Limited (GAIL) for the supply of piped natural gas (PNG).
Officials said RSP has signed a five-year agreement with GAIL to ensure uninterrupted availability of an alternative fuel source for critical steel manufacturing operations at the integrated steel plant.
As part of the arrangement, GAIL will facilitate laying the required pipeline infrastructure to supply PNG to the steel plant. The decision assumes significance as RSP has been facing difficulties in sourcing propane gas following disruptions in supply chains linked to the conflict in West Asia.
The deal with GAIL will help strengthen the steel plant’s energy security and reduce its dependence on propane gas, which is widely used in various industrial processes. It will also enhance operational reliability and efficiency in production.
Officials said the transition to natural gas will provide multiple long-term benefits, including cleaner fuel usage, better energy efficiency, lower carbon emissions and improved cost optimisation.
“The steel plant requires 180 tonnes to 200 tonnes of propane every month. Since there are supply constraints, we have planned to completely switch over to PNG in the next three months. PNG is cheaper and safer also,” said Archana Satpathy, PRO of RSP.
The move also aligns with RSP’s broader sustainability and green manufacturing initiatives. The availability of a stable and environment-friendly fuel source would be particularly beneficial for operations in the oxygen plant and utility services, which are crucial to modern steelmaking.
The latest initiative comes months after RSP adopted emergency measures to tackle shortages of propane caused by the international crisis. The plant had switched to acetylene as an alternative fuel for slab-cutting operations to maintain uninterrupted production.
Under that arrangement, RSP commissioned a dissolved acetylene cylinder bank in its steel melting shop-II to operate the transverse torch-cutting machine. Uninterrupted slab cutting and continuous feeding of slabs to the finishing mills are essential for sustaining steel production and avoiding disruptions in downstream operations.
Plant authorities said oxygen and other industrial gases form the backbone of modern steelmaking processes and are extensively used in converters, continuous casting, cutting operations and utility services. Different units of RSP also generate industrial gases as by-products, which are consumed internally while surplus quantities are sold to external agencies.
In 2025-26, RSP earned substantial revenue from the sale of liquid industrial gases. The plant sold 712 tonnes of liquid argon, generating around Rs 3.62 crore in revenue. Besides, the sale of 419 tonnes of liquid nitrogen also fetched approximately Rs 11.75 lakh.
In another significant technical accomplishment, the wet air inlet valve of molecular sieve bed-A in air separation unit (ASU-III) was replaced for the first time using in-house resources, ensuring quicker turnaround time for critical maintenance.
Officials believe the shift towards PNG and diversification of fuel sources will help RSP insulate itself from future geopolitical disruptions while supporting efficient and sustainable steel production.
Last month, RSP had taken proactive measures to optimise resource utilisation and ensure uninterrupted operations in Steel Melting Shop-II (SMS-II) in view of the recent shortage of propane.
The submerged entry nozzle (SEN) heating, being a critical activity for the continuous running of caster machines, traditionally relied on propane. But to address the supply constraints and reduce propane consumption, the SMS-II collective converted the SEN heating facilities of Caster-I, II and III from propane to mixed gas.
All necessary arrangements and infrastructure for the conversion were made operational using in-house expertise and available resources, demonstrating the plant’s strong technical capability and commitment to operational excellence.
“This innovative step is expected to significantly reduce dependency on propane while ensuring smooth and continuous caster operations,” the company said in a statement.