Coal India’s 3rd coal gasification project worth Rs 12,214 cr to come up in WCL’s Majri area

Mumbai: Coal India Limited (CIL) has signed a pact with Bharat Petroleum Corporation Limited (BPCL) for developing its third coal gasification project in Majri area of Western Coalfields Limited (WCL) in Maharashtra. “Coal India Limited (CIL) and Bharat Petroleum Corporation Limited (BPCL), the Maharatna PSUs, have executed a Non-Binding Memorandum of Understanding (MoU) on 02.12.2024 in Mumbai to explore setting up of Coal to Synthetic Natural Gas Project at WCL through Surface Coal Gasification,” said a statement.

The MoU was signed by Dr Peeyush Kumar, General Manager (BD), CIL, and Anurag Mittal, ED, BPCL, in the presence of BPCL CMD G Krishnakumar, CIL Director (BD) Debasish Nanda, BPCL Director (Marketing) SK Jain and other senior officers of BPCL.

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CIL’s 3rd coal gasification project will entail capex of Rs 12,214 cr

The Majri Area, WCL in Maharashtra, is where the proposed project has been envisioned. The Pre-feasibility Report of the project was prepared by M/s PDIL and got in- principle approval from the CIL Board. “There is a capital expenditure of Rs 12,214 crore for the project, and the annual capacity of SNG that is proposed to be produced is 633.6 Million Nm3. In order to reduce the amount of LNG that is imported, this project is in line with the National Gasification Mission of the Government of India and would give a boost to the Atamnirbhar Bharat Abhiyaan,” said the statement.

This is the third coal gasification project that CIL is collaborating with the Maharatna PSU. The other two projects are with BHEL and GAIL, where joint venture agreements have been signed and BCGCL, a JV of CIL and BHEL, has been incorporated.

Synthetic Natural Gas (SNG) is the final product of the project, considering the availability of Bombay to Nagpur proposed Gas pipeline. Presently, most of the Natural Gas demand in India meets with the import of LNG. Synthetic Natural Gas (SNG) predominantly consisting of > 95 percent Methane (CH4), also called as Substitute Natural Gas, describes a variety of natural gas alternatives that are as close as possible in composition and properties to natural gas.

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