GAIL, Coal India sign surface coal gasification project pact

GAIL and Coal India Ltd (CIL) have entered into a Memorandum of Understanding (MoU) for setting up a surface coal gasification project for production of synthesis gas for fertiliser production.

As part of deal, GAIL and CIL will jointly develop a surface coal gasification project for production of synthesis gas to be used as feedstock for fertiliser production. The project would entail an investment of around Rs 2400 crore for setting up the coal gasification plant.

The two companies will form a joint working group to evaluate a detailed feasibility report prepared by GAIL to determine the viability of the project in terms of techno-economic feasibility for the project.

Speaking on the occasion, Dr UD Choubey, chairman and managing director, GAIL, described the deal between the two as highly synergistic. He said this MoU signing follows close on the heels of the recent signing of the MoU with RCF for the use of this gas, and said he was confident that the commitment of the two Companies would undoubtedly see the project through. (See: GAIL, Rashtriya Chemicals and Fertilizers to set up coal gasification project)

GAIL had earlier carried out a study by Udhe India for examining the potential of the project and it is estimated that the project will consume around 5000 tonnes per day of coal to produce 7.76 MMSCMD of synthesis gas (equivalent to 3000 tonnes per day of ammonia) for the production of 3500 tonnes per day of urea.

GAIL will focus on the production and marketing of synthesis gas which will be in line with its core function of gas handling.