Itanagar: Oil India Limited (OIL) and Bharat Petroleum (BPCL) have signed a Joint Venture Agreement (JVA) to develop a gas distribution network in Arunachal Pradesh.
It would entail setting up Compressed Natural Gas (CNG) stations in the state and providing piped natural gas (PNG) to domestic, commercial and industrial consumers.
BPCL’s board had given its nod for the joint venture in October last year. Both public sector enterprises hold a 50% share each in the joint venture.
The agreement also serves a strategic purpose as it aligns with the government’s push toward a gas-based economy and clean energy access in the Northeastern region.
The agreement was signed at BPCL’s corporate office in Mumbai in the presence of its CMD Sanjay Khanna and OIL’s CMD Ranjit Rath.
“OIL has a long-standing legacy of hydrocarbon production in the state and with the commissioning of the Kumchai-Kusijan gas pipeline last year, we successfully reinforced our role as an anchor in advancing the Government of India’s hydrocarbon vision for the Northeast,” Ranjit Rath, CMD, OIL said.
Sanjay Khanna, CMD of BPCL, said the joint venture will expand clean energy access across the Northeast.
“Together with OIL, we will build a strong City Gas Distribution network to serve households, industries, and transport. Arunachal Pradesh holds great potential, and through this initiative, we aim to drive sustainable growth, improve the quality of life, and support India’s vision of a gas-based economy,” he added.
The City Gas Distribution (CGD) project in Arunachal Pradesh was awarded to the OIL-BPCL consortium during the 12th CGD bid conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB).
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The improved energy access through a CGD pipeline in Arunachal Pradesh is expected to promote industrial development and improve standards of living, as well as increase natural gas usage, which would help reduce India’s carbon footprint.
