New Delhi: Coal India Limited (CIL) has signed a joint venture agreement with the Gas Authority of India Limited (GAIL) to set up a coal-to-synthetic natural gas (or syngas) plant at Raniganj, West Bengal. The partnership aims to utilize the chemical properties of coal to produce syngas and is in line with the government’s National Coal Gasification Mission.
Synthetic Natural Gas (SNG) is a fuel gas consisting of Methane which is used for the production of various chemicals and fertilizers. The establishment of the plant will help in producing the raw material, and reduce dependency on import for natural gas, thereby supporting the Atma Nirbhar mission. This will be CIL’s second goal gasification project. Earlier it collaborated with Bharat Heavy Electricals Limited (BHEL) to set up India’s first commercial ammonium nitrate plant.
Coal India Limited is a public-sector firm established in 1975. It aims to develop clean coal technology and explore how the properties of coal can be utilized to optimally produce chemicals. GAIL (India) Limited is India’s major natural gas company, primarily engaged in the process of trading, transmission, and production of natural gas. The company is also expanding its presence in the renewable energy sector like Solar, Wind, and Biofuel energy.
