OIL, BPCL Form Joint Venture to Develop Gas Distribution Network in Arunachal Pradesh

New Delhi: Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL), both Maharatna Public Sector Enterprises, have signed a Joint Venture Agreement (JVA) to establish a Joint Venture Company (JVC) for developing a gas distribution network in Arunachal Pradesh. 

The agreement was formalized at BPCL’s Corporate Office in the presence of Dr. Ranjit Rath, Chairman and Managing Director of OIL, and Sanjay Khanna, Director (Refineries) with Additional Charge of Chairman and Managing Director, BPCL.

The newly formed JVC will implement the City Gas Distribution (CGD) project in Arunachal Pradesh, awarded to the OIL-BPCL consortium during the 12th CGD Bid Round conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB). The project will include setting up Compressed Natural Gas (CNG) stations and supplying Piped Natural Gas (PNG) to domestic, commercial, and industrial consumers.

The initiative is aimed at improving access to clean energy in the state and contributing to socio-economic growth. It aligns with the Government of India’s vision of promoting a gas-based economy and expanding clean energy infrastructure in the North-East region.

Dr. Rath highlighted that the establishment of the CGD network in Arunachal Pradesh is a significant milestone in OIL’s efforts to provide clean and reliable energy to the region. He noted that OIL already has a strong presence in the state through its hydrocarbon production activities, and last year’s commissioning of the Kumchai-Kusijan gas pipeline further strengthened its role in advancing the government’s hydrocarbon vision for the Northeast.

Khanna emphasized BPCL’s commitment to expanding clean energy access across India, with a particular focus on the North-East. He stated that the partnership with OIL will help build a robust CGD network in Arunachal Pradesh, enabling sustainable growth, improving quality of life, and supporting India’s transition towards a gas-based economy.

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