OIL and BPCL Form JV to Build City Gas Network in Arunachal Pradesh

29 Aug 2025 , 10:55 AM

State-run majors Oil India Ltd (OIL) and Bharat Petroleum Corporation Ltd (BPCL) have entered into a joint venture to develop a city gas distribution (CGD) network in Arunachal Pradesh, paving the way for wider access to compressed natural gas (CNG) and piped natural gas (PNG) in the state. The project is part of the government’s push to promote clean energy and accelerate the shift toward a gas-based economy in the North-East.

“OIL has been part of Arunachal’s hydrocarbon journey for decades. With the Kumchai–Kusijan gas pipeline commissioned last year, we reinforced our role in advancing the government’s energy vision for the region,” said Ranjit Rath, CMD of OIL.

BPCL chief Sanjay Khanna said the partnership will expand clean energy access across the state. “Together with OIL, we plan to build a strong distribution network for homes, industries and transport. Arunachal holds immense potential, and this initiative will support sustainable growth, improve quality of life and advance India’s gas-based economy,” he said.

The CGD project was awarded to the OIL–BPCL consortium under the 12th bidding round conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB). Both companies will hold an equal stake of 50% each in the joint venture. As part of the agreement, up to 10% equity may be offered to the Arunachal Pradesh government, reducing the shareholding of OIL and BPCL proportionately.

The gas grid is expected to boost industrial activity, enhance living standards, and encourage greater use of natural gas in the state, contributing to a lower carbon footprint for the country.

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