Coal India, GAIL sign JV to set up unit to convert coal into synthetic natural gas

economictimes.indiatimes.com:

Coal India Ltd and GAIL (India) Ltd have signed a pact for setting up a coal-to-synthetic natural gas plant using surface coal gasification technology in Raniganj area of West Bengal.

The plant's capacity is slated at 633.6 million Nm3per hour (Normal cubic metre), which will require 1.9 million tonnes of coal, the coal ministry said in a statement.

The partnership of the two state-owned companies is a part of the National Coal Gasification Mission which facilitates utilization of chemical properties of coal.

The coal ministry, in collaboration with the power and oil ministries, facilitated the joint venture agreement between two companies, as per the statement. Synthetic natural gas is a fuel consisting mainly of methane, which is a feedstock for production of chemicals and fertilizers. The upcoming plant will help in securing the raw material and reduce import dependency of natural gas, the government said.

ET had reported earlier that the coal ministry was working towards fostering the development of coal-gasification projects.

While the current coal production in India is somewhat in line with demand, it is expected that with the augmented production at commercial coal mines the supply of the fuel will increase in the next couple of years.