CIL and GAIL Sign Historic Coal-to-SNG Pact

New Delhi- Coal India Limited (TIL) and GAIL India Limited (GAIL) have signed a joint venture agreement (JVA) for setting up a coal to synthetic natural gas (SNG) plant in Raniganjarea of Eastern Coalfields Limited, West Bengalis.

The plant will produce 80000 tonnes of SNG per hour and require 1.9 million tonnes of coal. The coal will be supplied by CIL. The project is expected to help in securing the raw material and reduce the country’s reliance on imported natural gas.

The joint venture will help the country achieve its target of utilizing coal reserves in an environmentally-friendly manner, said Debasish Nanda, Director (Business Development), CIL.

He said that the government is committed to promoting coal gasification projects as it will enable in minimizing carbon emissions. The government is also offering financial assistance to develop coal gasification projects.

Under this project, CIL and GAIL will have the option to provide financial assistance of up to Rs. 8500 crore to eligible bidders (public and private) for undertaking of the coal/lignite gasification project. The last date for submitting the request for proposals (RFPs) is 11.11. 2024.

The signing ceremony of the JVA was held between the Director (Business Development) of CIL and GAIL.