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State-run Coal India Ltd (CIL) and Bharat Petroleum Corporation Ltd (BPCL) have entered into a non-binding memorandum of understanding (MoU) to explore the development of a coal-to-synthetic natural gas (SNG) project at Western Coalfields’ Majri area in Maharashtra.
The project, proposed to be executed through surface coal gasification, involves an estimated capital expenditure of ?12,214 crore. Once operational, the facility is expected to produce 633.6 million Nm³ of SNG annually, according to sources familiar with the matter.
In a regulatory filing, Coal India stated, "Coal India, a Maharatna PSU under the Ministry of Coal, and BPCL, a Maharatna PSU under the Ministry of Petroleum & Natural Gas, executed a non-binding MoU in Mumbai to explore the setting up of a coal-to-SNG project at WCL."
The pre-feasibility report for the project was prepared by Projects & Development India Ltd (PDIL) and has received in-principle approval from the Coal India board. This marks Coal India’s third coal gasification initiative, with similar projects in collaboration with BHEL and GAIL already underway.
The proposed SNG plant aligns with the Central Government’s National Gasification Mission and aims to reduce India’s dependency on imported liquefied natural gas (LNG). The facility would leverage the upcoming Mumbai-Nagpur gas pipeline for efficient distribution, boosting the government’s Atmanirbhar Bharat initiative.
Separately, Coal India reported a 1.7% year-on-year increase in coal production for November, reaching 67.2 million tonnes. Offtake for the month grew marginally by 0.03% year-on-year to 63 million tonnes. |
