Coal-to-Synthetic Natural Gas Project: CIL, GAIL inks deal

09 Aug 2024 CW Team

State-owned Coal India Ltd (CIL) announced that it has entered into a joint venture agreement with GAIL (India) Ltd to establish a coal-to-synthetic natural gas project in West Bengal. According to the agreement, CIL will hold a 51% share in the joint venture, while GAIL, the country's largest gas transportation and distribution company, will hold 49%. The joint venture will be set up as a private limited company with an initial paid-up share capital of Rs 1 lakh, as stated in a BSE filing by CIL. The registered office of the joint venture will be located in West Bengal, and both CIL and GAIL will each have the right to appoint three executives as directors of the joint venture.

Earlier this year, the Cabinet Committee on Economic Affairs had approved the establishment of a coal-to-synthetic natural gas project through a joint venture between CIL and GAIL, as well as a coal-to-ammonium nitrate project through a venture between CIL and BHEL.

As part of its efforts to meet the target of 100 million tonnes of coal gasification by 2030, CIL plans to set up two coal gasification plants. CIL currently accounts for over 80% of the domestic coal output.

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