Bokaro: The Bokaro Steel Plant (BSL) has switched from propane to piped natural gas (PNG) within its premises to mitigate rising costs and supply chain disruptions caused by the ongoing West Asia conflict, officials confirmed.
Emergency Response to Propane Shortage
In April this year, the public sector undertaking commissioned a 7-kilometer-long internal PNG pipeline network in just seven days to ensure uninterrupted production. The development was initially kept confidential for strategic reasons and only later became public knowledge.
The move came as an emergency response when propane stocks at the plant were sufficient for only 15 days, raising fears of a shutdown in critical units such as the steel melting shops and cold rolling mill, officials said on Wednesday.
Critical Role of Propane
“At BSL, propane had been a critical fuel for slab cutting in steel melting shops, cold rolling mills, and heating in galvanizing lines. These operations run round the clock and cannot afford interruptions. Even a minor disruption could have severely impacted steel output and deliveries,” said Manikant Dhan, Chief of Communications at BSL.
With propane consumption at nearly 15 tonnes per day and prices reaching Rs 1.3 lakh per tonne, the plant quickly sought alternatives. The utilities team proposed PNG as a viable substitute.
Rapid Implementation
Led by Director-in-Charge Priya Ranjan and Executive Director (Works) Anup Kumar Dutt, BSL signed a gas sales agreement with Indian Oil Corporation Ltd (IOCL). IOCL laid a 2-kilometer pipeline to the plant boundary, while BSL engineers completed the internal network under challenging conditions.
“The challenge was enormous. Work had to be carried out inside an active plant with extreme heat and heavy machinery movement, yet all activities, including welding and pressure testing, were completed without halting production,” Dhan said.
Benefits of the Transition
The shift has yielded immediate gains. “PNG is nearly 40% cheaper than propane. It reduces logistics, manpower requirements, and storage risks. Its trial was a great success,” he added. The transition has also improved safety and reduced carbon emissions. For over a month now, the plant has been running smoothly on PNG, reportedly saving crores of rupees while setting a benchmark in rapid industrial response during a global crisis.
