OIL and BPCL join hands to create a gas distribution network in Arunachal Pradesh

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In a significant development, Maharatna PSUs OIL and BPCL have signed a Joint Venture Agreement (JVA) to develop a gas distribution network in Arunachal Pradesh, with plans to roll out Compressed Natural Gas (CNG) stations and Piped Natural Gas (PNG) to households, businesses and industries.

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 North-eastern region.

"OIL has a long-standing legacy of hydrocarbon production in the state and with the commissioning of 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 North-East," Ranjit Rath, CMD, OIL said.

Sanjay Khanna, CMD of BPCL said the joint venture will expand clean energy access across the
North-East. "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 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).

In October last year, BPCLhad approved a joint venture agreement with Oil India for a city gas distribution project in Arunachal Pradesh, with had an equal shareholding pattern for the JV at 50% each for BPCL and Oil India. As part of the agreement, up to 10% stake may be offered to the Arunachal government, reducing the share proportion of both BPCL and OIL equally.

The improved energy access through a CGD pipeline in Arunachal Pradesh is expected promote industrial development and improve standards of living, as well as increase natural gas usage, which would help reduce India's carbon footprint.