Coal India Ltd and GAIL (India) Ltd have entered into an agreement to establish a coal-to-synthetic natural gas plant using surface coal gasification technology in the Raniganj area of West Bengal. This plant is set to have a capacity of 633.6 million Nm3 per hour, requiring 1.9 million tonnes of coal annually, according to a statement from the coal ministry.
This collaboration between the two state-owned enterprises is part of the National Coal Gasification Mission, which aims to utilize the chemical properties of coal more effectively. The coal ministry, in conjunction with the power and oil ministries, facilitated this joint venture agreement.
Synthetic natural gas, primarily composed of methane, is used as a feedstock for producing chemicals and fertilizers. The new plant will secure raw materials and reduce the country's dependency on natural gas imports.
Previously, ET reported that the coal ministry was actively promoting the development of coal gasification projects. While India's current coal production meets demand, the expected increase in production at commercial coal mines is anticipated to boost supply in the coming years.
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