BPCL, OIL Form JV for City Gas Project in Arunachal Pradesh

State-owned Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd have formed a joint venture company for creating a gas distribution network in Arunachal Pradesh, the firms said on Tuesday.

The firms signed an agreement to formalise the joint venture company (JVC).

"The JVC will create a gas distribution network in Arunachal Pradesh, which includes the establishment of Compressed Natural Gas (CNG) stations and the provision of piped natural gas (PNG) to domestic, commercial, and industrial consumers," they said in a statement.

"This initiative aims to enhance access to clean energy and contribute to the socio-economic development of the state, in alignment with the government's vision of fostering a gas-based economy." The government is targeting to increase the share of natural gas in the energy basket to 15% by 2030 from current over 6 per cent. City gas distribution, which involves sale of CNG to automobiles and piping the gas for householding cooking and industries, is seen a big driver.

Speaking on the occasion, Oil India Ltd Chairman and Managing Director Ranjit Rath said, "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." BPCL Chairman and Managing Director Sanjay Khanna said, "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." BPCL-OIL had won a CGD licence for Arunachal Pradesh in the 12th CGD bid round last year.