IOC to supply PNG to ease gas shortage at Visakhapatnam Steel Plant

Indian Oil Corporation (IOC) has come forward to supply piped natural gas (PNG) to the Visakhapatnam Steel Plant (VSP), which has been facing a recurring gas shortage. The plant management has accepted the proposal, and pipeline-laying works have commenced.

The latest shortage was reported in mid-March after supplies of industrial liquefied petroleum gas (LPG) were curtailed in the wake of the West Asia conflict. Following repeated representations, IOC arranged the phased supply of 18-tonne LPG tankers, providing temporary relief.

Officials said the situation has been aggravated by a sharp decline in in-house gas generation. The plant relies on coke oven batteries to produce waste gases used in steel-making processes, including the conversion of blooms into wire rods in the steel melting shop.

Of the five coke oven batteries, units 1 and 2 have become largely non-operational, while the fifth battery is functioning at reduced capacity, leading to a significant drop in gas availability.

With LPG supplies remaining inconsistent, the plant explored alternative options and initiated discussions with IOC.

IOC operates a PNG storage facility at the AP MedTech Zone in Aganampudi and supplies gas across north Andhra districts. It has already provided PNG connections to households in several parts of Gajuwaka.

According to officials, the plant has estimated a requirement of about 18,000 cubic metres of PNG per day. A six-kilometre pipeline is being laid from the MedTech Zone to the plant’s gas facility. PNG supply is expected to commence within a month, which is likely to stabilise operations and reduce costs to some extent.