Coal India and GAIL Join Forces to Build Synthetic Natural Gas Plant in West Bengal
New Delhi, August 6: The Ministry of Coal, in collaboration with the Ministry of Power and Natural Gas, has facilitated a joint venture agreement between Coal India Limited (CIL) and GAIL (India) Limited (GAIL). Signed on August 5, this agreement marks the establishment of a Coal to Synthetic Natural Gas (SNG) plant using advanced surface coal gasification (SCG) technology.
The plant will be built in the Raniganj area of Eastern Coalfields Limited, West Bengal, and 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, supplied by CIL.
This collaboration is a significant step in the National Coal Gasification Mission, aiming to utilize coal’s chemical properties. SNG, primarily consisting of methane (CH4), is a key feedstock for manufacturing various chemicals and fertilizers. The plant will help secure essential raw materials, reduce 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 agreement. M Nagaraju, Additional Secretary of Coal, emphasized the project’s importance and the need for efficient and environmentally friendly use of India’s coal reserves. He assured full governmental support, including financial backing for viable projects.
The government has 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.
SK Gupta, Chairman and Managing Director of GAIL, praised the teams from both companies and called for increased governmental support. Pankaj Jain, Secretary of the Ministry of Power and Natural Gas, stressed the importance of environmentally friendly uses for coal to meet emission targets. He highlighted the potential of SCG technology to convert coal into valuable syngas, which can be processed into synthetic natural gas.
Debasish Nanda urged M/s Projects and Development India Limited (PDIL), tasked with preparing a detailed feasibility report, to prioritize the project. He expressed gratitude to officials from the Ministries of Coal and Power and Natural Gas, and representatives from CIL, GAIL, and PDIL for their participation in the ceremony.
Doubts Revealed
Coal India Limited (CIL) -: Coal India Limited (CIL) is a government-owned company in India that produces coal. It is one of the largest coal-producing companies in the world.
GAIL (India) Limited (GAIL) -: GAIL (India) Limited (GAIL) is a government-owned company in India that deals with natural gas. It is involved in the processing, distribution, and marketing of natural gas.
Synthetic Natural Gas (SNG) -: Synthetic Natural Gas (SNG) is a type of gas that is made from coal or other materials instead of being extracted from natural gas fields. It can be used for the same purposes as natural gas.
West Bengal -: West Bengal is a state in eastern India. It is known for its rich culture, history, and is home to the city of Kolkata.
National Coal Gasification Mission -: The National Coal Gasification Mission is an initiative by the Indian government to promote the conversion of coal into gas. This helps reduce the need to import natural gas from other countries.
Nm3 per hour -: Nm3 per hour stands for Normal cubic meters per hour. It is a unit of measurement that tells us how much gas is produced or used in one hour under normal conditions.
Rs 8500 crores -: Rs 8500 crores is a large amount of money, where ‘Rs’ stands for Indian Rupees. One crore is equal to ten million, so 8500 crores is 85 billion rupees.
coal/lignite gasification -: Coal/lignite gasification is a process that converts coal or lignite (a type of coal) into gas. This gas can then be used for energy or other purposes.