CIL & GAIL sign JV for setting up coal to SNG plant

Prameyanews English

Published By : Prameya News Bureau | August 06, 2024 IST

SNG plant JV agreement

New Delhi, Aug 06: 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. This agreement marks a major step towards setting of 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 Bengal is planned to produce 80000 Nm3 per hour of Synthetic Natural Gas (SNG). The annual production is slated at 633.6 Million Nm3 per 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 chemical properties of coal.

Synthetic Natural Gas (SNG)is a fuel gas predominantly consisting of methane, CH4 which is a feedstock for production of various chemicals and fertlizers. The upcoming plant would help in securing the raw material and reduce import dependency of Natural gas and promoting Atmanirbharmission.

Debasish Nanda, Director (Business Development) CIL and R K Singhal, Director (Business Development) GAIL inked the JVA on behalf of CIL and GAIL respectively.

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