CIL and GAIL have signed a joint venture to build a Coal-to-Synthetic Natural Gas plant in West Bengal, advancing the National Coal Gasification Mission and reducing natural gas import dependence.
India: The Ministry of Coal, in collaboration with the Ministry of Power and Natural Gas, has facilitated a significant joint venture agreement between two leading Maharatna Central Public Sector Enterprises (CPSEs), Coal India Limited (CIL) and GAIL (India) Limited (GAIL). This landmark agreement marks a major advance in the development of a Coal-to-Synthetic Natural Gas (SNG) plant, utilizing surface coal gasification (SCG) technology.
The new facility, set to be established in the Raniganj area of Eastern Coalfields Limited in West Bengal, is designed to produce 80,000 Nm³ per hour of Synthetic Natural Gas. The plant's annual production is projected to reach 633.6 million Nm³, requiring 1.9 million tonnes of coal, which will be supplied by CIL. This collaboration represents a significant stride toward the National Coal Gasification Mission, which aims to harness the chemical properties of coal more efficiently.
Synthetic Natural Gas, primarily composed of methane (CH₄), is a crucial feedstock to produce various chemicals and fertilizers. The new plant is expected to enhance raw material security, reduce dependence on natural gas imports, and bolster India's Self-Reliance Mission.
The joint venture agreement was signed by senior representatives from CIL and GAIL. The commitment of both companies to this project is expected to serve as a model for future initiatives. The Ministry of Coal has identified gasification as a top priority and highlighted the need for additional coal gasification projects to minimize carbon emissions. The government has also announced financial support for viable projects, with Request for Proposals (RFPs) for financial incentives totaling Rs. 8,500 crores released on May 15, 2024, with a submission deadline of November 11, 2024.
GAIL's leadership emphasized the importance of further government support to advance the project. The Secretary of the Ministry of Power and Natural Gas underscored the potential of SCG technology to convert coal into valuable synthetic gas, which can serve as an alternative to natural gas, feedstock for chemical production, and a power generation source.
M. Nagaraju, Additional Secretary, Coal, Said, “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 in an environmentally friendly manner. He stressed the need for more coal gasification projects to be planned to minimize the carbon emission. He also said that all the possible support from the government is in place including financial support for viable gap funding. Request for Proposals (RFPs) for inviting eligible bidders (public and private) for financial incentives of Rs. 8,500 crores under three categories for Coal/lignite gasification project have been floated on 15.05.2024 for which last date of submission is 11.11.2024.”
Pankaj Jain, Secretary MoP&NG said, “He also emphasized that SCG is a promising technology that converts coal into valuable Syn gas. This further processing produces synthetic natural gas that can be used as alternative natural gas. It also has use as feedstock for downstream chemicals production which are currently being imported and for power generation as well.”
According to TechSci Research, the establishment of the Coal-to-Synthetic Natural Gas (SNG) plant by CIL and GAIL is poised to significantly impact the growth of the chemical market. By converting coal into Synthetic Natural Gas, the plant will provide a vital feedstock for various chemical processes. This shift not only enhances the availability of raw materials but also reduces reliance on imported natural gas, stabilizing supply chains and potentially lowering costs for chemical producers. The increased domestic production of SNG will support the growth of downstream industries, including the production of fertilizers and specialty chemicals, which are critical to agricultural and industrial applications. Additionally, the project aligns with sustainability goals by utilizing coal in an environmentally friendly manner, fostering innovation in cleaner technologies.