BSL switches to PNG to run key operations as West Asia conflict pushes propane prices north

Bokaro: The Bokaro Steel Plant (BSL) has switched from propane to piped natural gas (PNS) on plant premises to mitigate the rising costs and supply chain disruptions due to the ongoing West Asia conflict, officials here said.

In April this year, the PSU commissioned a 7km-long internal PNG pipeline network in seven days to ensure uninterrupted production. The development was kept under wraps by the PSU management for strategic purposes and came into public recognition later.





The move, which was an emergency response, came when propane stocks at the plant could last only 15 days, raising fears of shutdown in critical units such as the steel melting shops and cold rolling mill, officials said on Wednesday.

“At BSL, propane had been a critical fuel for slab cutting in steel melting shops, cold rolling Mills and heating in galvanising lines. These operations run round the clock and cannot afford interruptions. Even a minor disruption could have severely impacted steel output and deliveries,” Manikant Dhan, chief of communications at BSL, said.

With propane consumption at nearly 15 tonnes per day and prices touching Rs 1.3 lakh per tonne, the plant moved quickly to identify alternatives. The Utilities team proposed PNG as a viable substitute. Led by the director-in-charge Priya Ranjan and executive director (works) Anup Kumar Dutt, BSL signed a gas sales agreement with Indian Oil Corporation Ltd (IOCL). The IOCL laid a 2km-long pipeline up 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.

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 cut down on 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.