CIL and GAIL unite to establish Coal to SNG plant in West Bengal

The Ministry of Coal, in collaboration with the Ministry of Power and Natural Gas, has facilitated a joint venture agreement between two leading Maharatna CPSEs, Coal India Limited (CIL) and GAIL (India) Limited (GAIL). Signed on August 5, this agreement heralds the establishment of a Coal to Synthetic Natural Gas (SNG) plant utilising advanced surface coal gasification (SCG) technology.

According to a statement by the Ministry of Coal, the plant is set to be built in the Raniganj area of Eastern Coalfields Limited, West Bengal, the plant is expected 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 1.9 million tonnes of coal annually, which will be supplied by CIL.

This collaboration between the two corporate giants marks a substantial step forward in the National Coal Gasification Mission, which aims to capitalise on the chemical properties of coal.

Synthetic Natural Gas (SNG) primarily consists of methane (CH4) and serves as a key feedstock for manufacturing various chemicals and fertilisers. The forthcoming plant will help secure essential raw materials, decrease reliance on natural gas imports, and advance the Atmanirbhar Bharat (Self-Reliant India) mission.

Debasish Nanda, Director (Business Development) at CIL, and R.K. Singhal, Director (Business Development) at GAIL, signed the joint venture agreement on behalf of their respective organisations.

At the signing ceremony, M Nagaraju, Additional Secretary of Coal, emphasised that CIL and GAIL's commitment to this project would serve as a model. He highlighted gasification as the Ministry of Coal's highest priority and stressed the need to use India's vast coal reserves efficiently and in an environmentally friendly manner.

He also noted the necessity of planning more coal gasification projects to reduce carbon emissions and assured full governmental support, including financial backing for viable projects.

The government has already issued Requests for Proposals (RFPs) to attract eligible bidders for financial incentives worth Rs 8500 crores for coal/lignite gasification projects, with a submission deadline of November 11, read the press release.

SK Gupta, Chairman and Managing Director of GAIL, praised the teams from both companies and called for increased governmental support to advance this project. Additionally, Pankaj Jain, Secretary of the Ministry of Power and Natural Gas, stressed the importance of finding environmentally friendly uses for coal, such as coal gasification, to meet the country's emission targets, read the press release.

He highlighted the potential of SCG technology to convert coal into valuable syngas, which can then be processed into synthetic natural gas. This gas can serve as an alternative to natural gas and as a feedstock for downstream chemical production and power generation.

In his concluding remarks, Debasish Nanda, Director BD at CIL, urged M/s Projects and Development India Limited (PDIL), which has been tasked with preparing a detailed feasibility report for the plant, to prioritise the project.

He expressed his gratitude to the officials from the Ministries of Coal and Power and Natural Gas, as well as to the representatives from CIL, GAIL, and PDIL for their participation in the ceremony.