NMDC partners with GAIL Gas to supply natural gas to Nagarnar pellet plant
A 130-km pipeline will connect Odisha to Chhattisgarh as state-owned enterprises expand industrial gas infrastructure.
State-owned mining leader NMDC has signed a long-term gas sale agreement with GAIL Gas to secure natural gas supplies for its 2 million tonne iron ore pellet plant at Nagarnar in Chhattisgarh.
The agreement advances India's commitment to building sustainable industrial infrastructure by transitioning key manufacturing operations away from fossil fuels like furnace oil towards cleaner natural gas.
What the agreement delivers
Under the terms of the deal, GAIL Gas will construct a 130-kilometre natural gas pipeline stretching from Damanjodi in Odisha to the Nagarnar plant in Chhattisgarh. The new link acts as an extension of the existing pipeline corridor running from Dhamra Port to Damanjodi, which currently supplies National Aluminium Company (NALCO).
Besides laying the pipeline, the GAIL subsidiary will establish dedicated pipeline connectivity alongside a specialized gas receiving and metering station at the Nagarnar complex to ensure uninterrupted supply.
| Project Parameter | Details |
|---|---|
| Target Facility | NMDC Pellet Plant, Nagarnar |
| Annual Capacity | 2 million tonnes |
| Pipeline Route | Damanjodi (Odisha) to Nagarnar (Chhattisgarh) |
| Pipeline Length | 130 km |
| Fuel Transition | Furnace oil to natural gas |
| Primary Supplier | GAIL Gas |
Boosting efficiency and environmental standards
Replacing furnace oil with natural gas will substantially lower industrial emissions at the Nagarnar facility while enhancing process efficiency, elevating product quality, and improving long-term operational cost competitiveness.
The expansion also brings natural gas infrastructure into the Jagdalpur region, laying the groundwork for broader industrial clean energy adoption across the industrial belt.
NMDC Chairman and Managing Director Amitava Mukherjee said the agreement represents a crucial step towards sustainable manufacturing.
"By transitioning to natural gas at Nagarnar, we aim to substantially reduce emissions while strengthening the efficiency and competitiveness of our pellet operations," Mukherjee said. "It reflects our commitment to integrating environmental responsibility with long-term industrial growth."
Key signatories
The formal agreement was executed by G S S V Suresh, Executive Director (Works) at NMDC, and Mohd Zafar Khan, Head of Marketing at GAIL Gas. The signing took place in the presence of NMDC Director (Technical) Vinay Kumar and Director (Commercial) Vivek Nishant Nath, alongside senior management from both public sector enterprises.
Key numbers
| What | Figure | Source |
|---|---|---|
| Pellet plant capacity | 2 million tonnes | NMDC |
| Pipeline length | 130 km | NMDC |
In this story
| Name | Role in the story |
|---|---|
| NMDC | State-owned mining corporation operating the Nagarnar pellet plant. |
| Nagarnar | Location of NMDC's 2 MT pellet plant in Chhattisgarh. |
| GAIL Gas | Subsidiary of GAIL supplying natural gas and building pipeline infrastructure. |
