Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL) have formalised a joint venture to roll out City Gas Distribution (CGD) networks in Arunachal Pradesh, marking a significant step in strengthening India’s clean energy infrastructure in the Northeast.

Award through 12th CGD Bidding Round

The OIL-BPCL consortium was awarded the Arunachal Pradesh CGD project as part of the 12th round of bidding conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB). Under this framework, the JV will be responsible for setting up pipelines, distribution networks, and consumer connections to enable household, commercial, and industrial access to piped natural gas (PNG) and compressed natural gas (CNG).

Boost to Northeast’s Energy Security

This collaboration is a major push towards expanding clean fuel availability in Northeast India. Arunachal Pradesh, with its growing urban centers, has been identified as a key market for natural gas adoption. The introduction of a reliable gas distribution system is expected to reduce dependence on traditional fuels, promote environmental sustainability, and support the state’s economic growth.

OIL-BPCL Synergy

The joint venture leverages OIL’s upstream expertise in exploration and production and BPCL’s downstream strength in fuel marketing and distribution. Together, they aim to develop an integrated supply chain for natural gas in the region. Officials from both companies stated that the project aligns with India’s broader objective of raising the share of natural gas in the energy mix from around 6% to 15% by 2030.

Impact on Consumers

For households, the rollout of PNG connections will provide safer and more convenient access to cooking fuel, while businesses and industries will benefit from cost-effective and cleaner energy sources. Expansion of CNG stations will also support India’s green mobility mission, particularly in Northeast India, where infrastructure development has been a government priority.

Conclusion

By formalising this joint venture, Oil India and BPCL have reinforced their commitment to strengthening India’s gas infrastructure and ensuring the availability of clean energy in remote regions like Arunachal Pradesh. The move is not only a business expansion but also a strategic alignment with India’s vision of energy transition and sustainability.

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