CIL, GAIL joint venture to produce synthetic gas through surface coal gasification

Maharatna central public sector enterprises Coal India Limited (CIL) and GAIL (India) Limited on Monday signed a joint venture agreement for setting up a coal-to-synthetic natural gas (SNG) plant using surface coal gasification (SCG) technology.

The plant, which will come up in the Raniganj area of Eastern Coalfields Limited in West Bengal, will produce 80,000 Nm3 per hour of synthetic natural gas (SNG), with annual production of 633.6 million Nm3.

The plant will utilize 1.9 million tons of coal, which will be supplied by Coal India Ltd.

Synthetic Natural Gas (SNG) mainly contains methane (CH4), which can be used both as fuel and as feedstock for production of various chemicals and fertilizers. 

The project would help secure raw material and reduce import dependence of natural gas.

The joint venture project is being sponsored by the ministry of coal, and the ministry of power and natural gas. 

The SNG project is eligible for financial incentives of up to Rs8,500 crore under viability gap funding, as per the Request for Proposals (RFPs) inviting eligible bidders.

CIL proposes to establish two coal gasification plants with a target of achieving 100 million tons of coal gasification by 2030.