CIL and GAIL Forge Landmark Agreement for Coal-to-Synthetic Natural Gas Plant

This agreement marks a pivotal development in the National Coal Gasification Mission with the establishment of a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification (SCG) technology.

On August 5, 2024, the Ministry of Coal, in collaboration with the Ministry of Power and Natural Gas, announced a significant joint venture agreement between two leading Maharatna Central Public Sector Enterprises (CPSEs), Coal India Limited (CIL) and GAIL (India) Limited (GAIL). This agreement marks a pivotal development in the National Coal Gasification Mission with the establishment of a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification (SCG) technology.

The new plant, set to be located in the Raniganj area of Eastern Coalfields Limited in West Bengal, aims to produce 80,000 Nm³ per hour of Synthetic Natural Gas (SNG). With an annual production target of 633.6 million Nm³, the plant will require approximately 1.9 million tonnes of coal, which will be supplied by CIL. This venture represents a major step towards leveraging coal's chemical properties and reducing India's dependency on imported natural gas, in line with the Atmanirbhar Mission.

Synthetic Natural Gas, primarily composed of methane (CH4), serves as a crucial feedstock for the production of various chemicals and fertilizers. The upcoming plant is expected to secure vital raw materials, reduce import dependency, and support India's self-reliance goals.

During the signing ceremony, Shri Debasish Nanda, Director (Business Development) of CIL, and Shri R.K. Singhal, Director (Business Development) of GAIL, formalized the joint venture agreement on behalf of their respective organizations.

Shri M. Nagaraju, Additional Secretary of Coal, highlighted the significance of this project, calling it a model for future initiatives. He emphasized that coal gasification is a top priority for the Ministry of Coal, which aims to utilize the country's vast coal reserves in an environmentally friendly manner. Nagaraju also mentioned the government's commitment to supporting such projects, including financial incentives, with a Request for Proposals (RFPs) issued for coal and lignite gasification projects, inviting public and private bidders to apply for financial support of Rs. 8,500 crores.

Shri S.K. Gupta, Chairman & Managing Director of GAIL, commended the collaborative effort and urged for continued government support to advance the project.

Shri Pankaj Jain, Secretary of the Ministry of Power and Natural Gas, emphasized the need for environmentally friendly coal utilization technologies such as SCG, which not only help meet emission targets but also produce valuable SNG and feedstock for chemical production.

In closing, Shri Debasish Nanda advised Projects and Development India Limited (PDIL), which is tasked with preparing a detailed feasibility report for the plant, to prioritize the project. He expressed gratitude to the officials from the Ministry of Coal, P&NG, CIL, GAIL, and PDIL for their participation in the ceremony.