Coal India and GAIL Join Forces for Coal-to-SNG Plant

Coal India Limited (CIL) and GAIL (India) Limited have entered into a strategic partnership to establish a coal-to-synthetic natural gas (SNG) plant in the Raniganj area of West Bengal. This collaboration marks a significant step towards India’s energy independence and aligns with the National Coal Gasification Mission.

The plant, utilising advanced surface coal gasification technology, is expected to produce 80,000 Nm3 per hour of SNG, with an annual production target of 633.6 million Nm3. To meet this production capacity, CIL will supply 1.9 million tonnes of coal.

The project is poised to reduce India’s reliance on natural gas imports, as SNG is a viable alternative fuel for various industrial applications, including the production of chemicals and fertilisers. Moreover, it is anticipated to boost the domestic coal market as demand for coal is set to increase with the plant’s operations.

The collaboration between these two state-owned giants signifies a concerted effort to leverage India’s abundant coal reserves for value-added products. This initiative aligns with the government’s push for energy self-sufficiency and aligns with the broader goal of reducing the country’s carbon footprint.

Shri. Pankaj Jain, Secretary MoP&NG, said that alternative uses of coal for environment-friendly ventures like coal gasification should come up in the future to cater to the country’s emission target. He also emphasised that SCG is a promising technology that converts coal into valuable Syn gas. This on 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.

While summing up, Shri Debasish Nanda, Director BD, CIL, advised M/s Projects and Development India Limited, which has been assigned the work of preparing a detailed feasibility report of the plant to take up the project on priority. He expressed his thanks to the officials of the Ministry of Coal, P&NG, officials of CIL, GAIL and PDIL for attending this signing ceremony

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