Coal India and GAIL Ink Pact to Set Up Plant for Converting Coal to Synthetic Natural Gas
Leading Maharatna public sector companies Coal India Limited (CIL) and GAIL (India) Limited have signed a landmark joint venture agreement to establish a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification technology. This significant collaboration was announced by the Ministry of Coal.
The plant, to be located in the Raniganj area of Eastern Coalfields Limited in West Bengal, is projected to produce 80,000 Nm3 per hour of Synthetic Natural Gas. Annual production is expected to reach 633.6 million Nm3, requiring 1.9 million tonnes of coal supplied by CIL.
“The synergy and partnership of these two corporate giants mark a significant step towards achieving the goals of the National Coal Gasification Mission, facilitating the utilization of the chemical properties of coal,” the ministry said in a statement.
Synthetic Natural Gas, predominantly consisting of methane (CH4), serves as a feedstock for producing various chemicals and fertilizers. The establishment of this plant will secure essential raw materials and reduce India’s reliance on natural gas imports, aligning with the Atmanirbhar mission. Additionally, it will contribute to minimizing carbon emissions as part of the country’s efforts to combat climate change.
The joint venture agreement was signed by Debasish Nanda, Director (Business Development) at CIL, and R.K. Singhal, Director (Business Development) at GAIL, representing their respective companies.
During the signing ceremony, M. Nagaraju, Additional Secretary of Coal, emphasized that the commitment of CIL and GAIL to this project would serve as a role model. “Gasification is the highest priority area for the Ministry of Coal. India has been blessed with huge reserves of coal, and these reserves should be utilized in an environment-friendly manner,” he stated.
Nagaraju also highlighted the necessity of planning additional coal gasification projects to further minimize carbon emissions. He assured that the government would provide all possible support, including financial aid for viable gap funding. To this end, Request for Proposals (RFPs) for inviting eligible bidders (public and private) for financial incentives of Rs 8,500 crore under three categories for coal/lignite gasification projects were issued on May 15, 2024, with the submission deadline set for November 11, 2024.
Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, expressed the importance of exploring alternative uses of coal for environment-friendly ventures like coal gasification. He stressed that such initiatives are crucial for meeting the country's emission reduction targets.
