{"url":"https://newsforagent.com/news/2026-10-17/gail-gas-nmdc-nagarnar-gas-agreement","markdown_url":"https://newsforagent.com/news/2026-10-17/gail-gas-nmdc-nagarnar-gas-agreement.md","title":"GAIL Gas Signs NMDC Nagarnar Pellet Plant Gas Deal","headline":"GAIL Gas to Supply Natural Gas to NMDC's 2 Million Tonne Nagarnar Pellet Plant","description":"GAIL Gas will supply natural gas to NMDC's 2 million tonne Nagarnar pellet plant and develop a 130-km pipeline from Damanjodi in Odisha.","section":"Partnerships","published_at":"2026-10-17T17:19:35+00:00","modified_at":"2026-10-17T17:19:35+00:00","author":"News Desk","key_takeaways":["NMDC signed a long-term gas sale agreement with GAIL Gas for its 2 million tonne iron ore pellet plant at Nagarnar in Chhattisgarh.","A 130-km natural gas pipeline will be laid from Damanjodi in Odisha to the Nagarnar plant, extending the network that supplies NALCO.","GAIL Gas will develop the pipeline connectivity and build a gas receiving and metering station at Nagarnar."],"companies":[{"name":"GAIL Gas","is_primary":true,"profile_url":"https://akta.pro/company-profiles/000czi7/gail-gas","website":"https://www.gailgas.com"}],"source":{"publisher":"The Hindu","title":"NMDC inks pact with GAIL arm to secure natural gas supplies for 2 MT pellet plant","url":"https://www.thehindu.com/business/nmdc-inks-pact-with-gail-arm-to-secure-natural-gas-supplies-for-2-mt-pellet-plant/article71597144.ece"},"other_sources":[],"tags":["Partnerships","GAIL Gas"],"body_markdown":"State-owned NMDC has signed a long-term gas sale agreement with [GAIL Gas](https://akta.pro/company-profiles/000czi7/gail-gas), a subsidiary of GAIL (India) Limited, to secure natural gas supplies for its 2 million tonne iron ore pellet plant at Nagarnar in Chhattisgarh. [The Hindu](https://www.thehindu.com/business/nmdc-inks-pact-with-gail-arm-to-secure-natural-gas-supplies-for-2-mt-pellet-plant/article71597144.ece) reported the agreement on October 17, 2026.\n\n## The Nagarnar Gas Supply Agreement\n\nUnder the agreement, GAIL Gas will develop the required pipeline connectivity and establish a gas receiving and metering station at Nagarnar to ensure a reliable supply of natural gas. A 130-km natural gas pipeline will be laid from Damanjodi in Odisha to the Nagarnar plant, extending the existing pipeline network from Dhamra Port to Damanjodi that supplies gas to the National Aluminium Company (NALCO) plant.\n\nThe transition to natural gas from furnace oil is expected to reduce emissions and improve process efficiency, product quality and long-term cost competitiveness at the 2 million tonne plant. NMDC said the expansion of the natural gas pipeline network into the Jagdalpur region is expected to facilitate the transition to cleaner industrial fuel.\n\nNMDC Chairman and Managing Director Amitava Mukherjee said the agreement marked a significant step towards cleaner and more sustainable operations. \"By transitioning to natural gas at Nagarnar, we aim to substantially reduce emissions while strengthening the efficiency and competitiveness of our pellet operations. It reflects our commitment to integrating environmental responsibility with long-term industrial growth,\" he said in a release.\n\nThe agreement was signed by G S S V Suresh, Executive Director (Works) of NMDC, and Mohd Zafar Khan, Head-Marketing of GAIL Gas, in the presence of NMDC Director (Technical) Vinay Kumar, Director (Commercial) Vivek Nishant Nath and senior officials from both organisations.\n\n## GAIL Gas Odisha Network Plans\n\nGAIL Gas operates city gas distribution networks delivering piped natural gas and CNG to over 22 lakh households across nine Indian states under PNGRB authorization, according to akta.pro [company records](https://akta.pro/company-data). The company was authorized under the Odisha City Gas Distribution Policy 2026 with Rs 51 billion committed investment to deliver 0.9 million domestic PNG connections and 271 CNG stations across all 30 districts of Odisha. In April 2026, GAIL Gas was nearing completion of the PNG distribution network for Berhampur in Odisha's Ganjam district, with 36 km of a 44 km steel pipeline laid.\n\n## Earlier GAIL Gas Developments\n\nIn September 2026, GAIL Gas began appointing investment banks for an IPO that could raise up to ₹3,100 crore, seeking up to four book-running lead managers with bids expected by early next month, Mint reported. The same month, amid rising LNG rates, GAIL Gas turned to blended pricing to keep industrial gas affordable, offering industrial customers a blended price for up to 80% of their contracted volumes with additional volumes priced at higher international spot rates, The Times of India reported.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}