The Hindu Business Line : GAIL, Coal India in pact for gasification projects

WITH soaring demand for clean fuels and a tight supply situation, GAIL (India) Ltd has entered into an agreement with Coal India Ltd (CIL) for its pursuits in the surface coal gasification (SCG) projects.

This will help in taking further steps in the area of SCG and harnessing gas from the vast coal reserves in the country on a commercial scale, said Mr Proshanto Banerjee, Chairman and Managing Director, GAIL.

GAIL is not only actively pursuing SCG opportunities but looking at the two other important routes - coal bed methane (CBM) and underground coal/lignite gasification (UCG), he told Business Line.

Although other domestic companies are pursuing CBM technology, GAIL is actively pursuing the SCG route for application of this technology for producing synthetic gas, Mr Banerjee said.

Recently, ONGC has entered into an MoU with CIL for active association in UCG.

For the SCG project, GAIL has identified Talcher in Orissa and Durgapur in West Bengal as suitable locations, based on a feasibility study.

The project will involve an estimated investment of $400 million for generating more than six million cubic metres of synthetic gas daily to feed an 858,000-tonnes-per-annum ammonia plant, he said.

The company is also planning to set up a `Centre for Clean Coal Gas Technologies' for harnessing gas from coal through the three important routes - CBM, SCG, and UCG.

The centre will take up collaborative research and development activities as well as aid commercialisation of technological developments in the three areas.

For the purpose, GAIL plans to involve Dr Michael Green, founder of the UCG Partnership in the UK, and other international experts, Mr Banerjee said.

The Centre will help in unlocking billions of cubic metres of gas from 247 billion tonnes of coal/lignite reserves in the country, he added.

More Stories on : Alliances & Joint Ventures | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page