Hindi Version
GAIL (India) Limited
GAIL, Coal India sign MoU to set up surface coal gasification project
New Delhi, January 10, 2008: GAIL (India) Limited and Coal India Limited (CIL) have entered into an MOU for setting up of a surface coal gasification project for production of synthesis gas for fertilizer production. The MoU was signed here today by Mr. A. K. Purwaha, Director (Business Development), GAIL and Mr. N. C. Jha, Director (Technical), CIL in presence of Dr. U. D. Choubey, Chairman and Managing Director, GAIL and Mr. Partha S. Bhattacharyya, Chairman, CIL.
As part of MOU, GAIL and CIL will jointly develop a surface Coal Gasification Project for production of synthesis gas to be used as feedstock for fertilizer 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 detailed feasibility report prepared by GAIL to evaluate the viability of the project in terms of techno-economic feasibility for the project.
Speaking on the occasion, Dr. U. D. Choubey, CMD, GAIL described the MoU 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.
Mr. Partha S. Bhattacharyya, Chairman, CIL said that it’s a day which we had been looking forward to for quite some time. For CIL it is more noteworthy as this is an .area of clean coal technology. “I am sure that with the work already done, this project will come up soon”, he added.
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 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.
About GAIL (India) Limited
GAIL (India) Limited is India's largest natural gas company having a market share of 78% in natural gas transmission and 70% in natural gas marketing. Apart from natural gas transmission, distribution and processing, the Company has diversified business interests in LPG transmission, petrochemicals, city gas projects and exploration and production activities. The Company has presence in countries such as Egypt, Myanmar, China and Oman.
GAIL is one of the leading public enterprises with a consistently excellent financial track record. Turnover and Net Profits during the last ten years has shown a compounded annual growth rate of 14 per cent. The Company recorded a Turnover of Rs. 16,047 crore and Profit After Tax of Rs. 2,387 crore in the year 2006-07.
GAIL owns and operates around 6700 km of natural gas pipeline transmission network with a capacity of 148 MMSCMD and is laying five new natural gas pipelines measuring 5000 km. involving a capex of nearly Rs. 20,000 crore which shall enhance the transmission capacity to around 300 MMSCMD in 2011.
About CIL
CIL is the largest single coal producing company in the world owned by Government of India engaged in the mining of coal, coal based products and mining consultancy and desires to expand its business in new directions such as development of Surface Coal Gasification process, production of synthesis gas for marketing and distribution to entities for production of Ammonia for use in production of explosives and fertilizers. CIL is planning to develop coal mines in and around Talcher in Orissa to meet the additional coal requirement in the country.
Dr. U. D. Choubey, Chairman and Managing Director, GAIL and Mr. Partha S. Bhattacharyya, Chairman, CIL exchanging documents after signing of MoU for Surface Coal Gasification project in New Delhi.