Coal India Limited and GAIL pen a joint venture to establish a coal-to-synthetic natural gas plant

Recently, Coal India Limited (CIL) and GAIL (India) Limited (GAIL), two prominent state-owned enterprises, began a joint venture to set up a coal-to-synthetic natural gas (SNG) plant using surface coal gasification technology. This initiative is supported by India's Ministry of Coal and the Ministry of Power & Natural Gas. The planned facility, located in the Raniganj area of Eastern Coalfields Limited in West Bengal, aims to produce 80,000 Nm3 per hour of SNG, translating to an annual total of 633.6 million Nm3. CIL will supply about 1.9 million tonnes of coal each year to support this output. This project is aligned with the National Coal Gasification Mission, which seeks to promote the chemical use of coal.

The plant will produce synthetic natural gas, mainly methane, which is crucial for manufacturing various chemicals and fertilizers. This effort is part of a broader strategy to decrease India’s reliance on imported natural gas and promote self-sufficiency.

The joint venture was formalized by Debasish Nanda and R K Singhal, the Business Development Directors of CIL and GAIL, respectively. During the event, M. Nagaraju, the Additional Secretary of Coal, emphasized that this project exemplifies how India can use its abundant coal resources responsibly and efficiently. He mentioned that such projects are a priority for the Ministry of Coal.

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The government is also backing these projects financially. It has invited proposals for Rs. 8500 crores in funding for coal and lignite gasification projects, with a submission deadline of November 11, 2024. This support underlines the government's commitment to developing environmentally friendly and sustainable energy solutions.