BPCL and Oil India Launch Joint Venture for City Gas Distribution in Arunachal Pradesh

A collaboration between Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd has been established to develop a gas distribution network in Arunachal Pradesh. The companies have signed an agreement to formalise this joint venture, which will focus on creating infrastructure for Compressed Natural Gas (CNG) stations and providing piped natural gas (PNG) to various consumers, including domestic, commercial, and industrial sectors.

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The initiative is part of a broader effort to increase the use of clean energy in India. It aligns with the government's goal of promoting a gas-based economy. By 2030, the government aims to raise the share of natural gas in the country's energy mix to 15% from the current level of over 6%. City gas distribution, which includes supplying CNG for vehicles and PNG for households and industries, is expected to play a crucial role in achieving this target.

Focus on Clean Energy Access

BPCL Chairman and Managing Director Sanjay Khanna expressed commitment to expanding clean energy access across India, particularly in the Northeast. He stated, "This joint venture reaffirms BPCL's commitment to expanding clean energy access across India, with special focus on the Northeast. Together with OIL, we will build a strong city gas distribution CGD 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."

Oil India Ltd Chairman and Managing Director Ranjit Rath highlighted the significance of this development for the region. He remarked, "The establishment of city gas distribution in Arunachal Pradesh is a significant step in OIL's ongoing initiative to realise the vision of bringing clean and reliable energy to the 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 Northeast."

Strategic Vision for Gas-Based Economy

The joint venture aims to enhance access to clean energy while contributing to Arunachal Pradesh's socio-economic development. This aligns with India's strategic vision of fostering a gas-based economy. The government sees city gas distribution as a major driver for increasing natural gas usage across various sectors.

Last year, BPCL-OIL secured a City Gas Distribution (CGD) licence for Arunachal Pradesh during the 12th CGD bid round. This marks a significant step towards establishing a robust infrastructure for natural gas distribution in the region.

The partnership between BPCL and Oil India Ltd represents a concerted effort to promote sustainable growth in Arunachal Pradesh. By focusing on clean energy solutions, they aim to improve living standards while supporting India's broader energy goals.

With inputs from PTI