OIL and BPCL to jointly develop natural gas infrastructure in Arunachal Pradesh under PNGRB-awarded CGD project, aiming to expand clean energy access across sectors.
26 Aug 2025 | 8390 Views | By Sarthak Mahajan
Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL), both Maharatna Central Public Sector Enterprises, today signed a Joint Venture Agreement (JVA) to establish a Joint Venture Company (JVC) aimed at developing a comprehensive City Gas Distribution (CGD) network in Arunachal Pradesh.
The agreement was formalized at the ...
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Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL), both Maharatna Central Public Sector Enterprises, today signed a Joint Venture Agreement (JVA) to establish a Joint Venture Company (JVC) aimed at developing a comprehensive City Gas Distribution (CGD) network in Arunachal Pradesh.
The agreement was formalized at the BPCL Corporate Office in the presence of Dr. Ranjit Rath, Chairman and Managing Director of OIL, and Shri Sanjay Khanna, Director (Refineries) with additional charge as Chairman and Managing Director of BPCL.
The newly formed JVC will implement a gas distribution infrastructure across Arunachal Pradesh, including the development of Compressed Natural Gas (CNG) stations for the transport sector and the rollout of Piped Natural Gas (PNG) supply systems for domestic, commercial, and industrial consumers. The project falls under the 12th CGD Bid Round conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB), under which the OIL-BPCL consortium was awarded the rights for Arunachal Pradesh.
This initiative is aligned with the Government of India’s broader objective of promoting a gas-based economy and enhancing access to cleaner sources of energy, particularly in the northeastern region.
Dr. Ranjit Rath, CMD of OIL, highlighted the company’s long-standing operational presence in the state. “The establishment of City Gas Distribution in Arunachal Pradesh marks a significant milestone in our efforts to deliver clean and reliable energy to the region. With the successful commissioning of the Kumchai-Kusijan gas pipeline last year, OIL has reinforced its role as a key contributor to India’s hydrocarbon development in the North-East,” he said.
Shri Sanjay Khanna, CMD of BPCL, emphasized the environmental and socio-economic benefits of expanding natural gas infrastructure. “This joint venture underscores BPCL’s commitment to extending clean energy solutions across India, with a special focus on the North-East. By building a robust CGD network in Arunachal Pradesh, we aim to support sustainable development, improve energy access, and contribute to the quality of life for local communities,” he stated.
The CGD project is expected to facilitate the transition from conventional fuels to cleaner alternatives, supporting both environmental goals and regional economic growth. It also reflects the continued push by public sector energy companies to expand infrastructure in India’s eastern and northeastern states.
The JVC will now proceed with project planning, regulatory clearances, and infrastructure development to roll out gas distribution services in phases across the state.