CIL &GAIL Sign a JV for Setting up Coal to SNG Plant

Newdelhi:6/8/24:The Ministry of Coal, in collaboration with the Ministry of Power& Natural Gas, has facilitated a landmark joint venture agreement between two leading Maharatna CPSEs, Coal India Limited (CIL) and GAIL (India) Limited (GAIL) today (05.08.2024). This agreement marks a major step towards setting up a Coal to Synthetic Natural Gas (SNG) plant using surface coal gasification (SCG) technology.

The plant to come up in Raniganjarea of Eastern Coalfields Limited, West Bengalis planned to produce 80000 Nm³ per hour of Synthetic Natural Gas (SNG). The annual production is slated at 633.6 Million Nm3 hour which will require 1.9 million tonnes (mts) of coal. The coal will be supplied by CIL. The synergy and partnership of the two corporate giants is a big step towards National Coal Gasification Mission which facilitates utilization of the chemical properties of coal.

Synthetic Natural Gas (SNG)is a fuel gas predominantly consisting of methane, CH4 which is a feedstock for the production of various chemicals and fertilizers. The upcoming plant would help in securing the raw material reducing import dependency on Natural gas and promoting Atmanirbharmission.Shri. Debasish Nanda, Director (Business Development) CIL and Shri. R K Singhal, Director (Business Development) GAIL inked the JVA on behalf of CIL and GAIL respectively.

Shri. M. Nagaraju, Additional Secretary, Coal, while addressing the signing ceremony mentioned that the commitment of CIL and GAIL to this project will be 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 gainfully and in an environmentally friendly manner.

Shri. S K Gupta (Chairman & Managing Director), GAIL while complementing the team of CIL and GAIL expressed the need to have more support from Government to take ahead of this project.

Shri. Pankaj Jain, Secretary MoP&NG, said that the alternative uses of coal for environment-friendly ventures like coal gasification should come up in future to cater to the emission target of the country. He also emphasized that SCG is a promising technology that converts coal into valuable Syn gas.While summing up, Shri Debasish Nanda, Director BD, CIL advised M/s Projects and Development India Limited, which has been assigned the work for preparing a detailed feasibility report of the plant to take up the project on priority. He expressed his thanks to the officials of Ministry of Coal, P&NG, officials of CIL, GAIL and PDIL for attending this signing ceremony.