The Hindu Business Line : ONGC in talks with Coal India for coal gasification projects

AS part of its strategy to find out alternative sources of gas, ONGC Ltd is actively considering exploitation of coal gas from virgin coal deposits by introducing "underground coal gasification (UCG)" technology.

If it turns out to be commercially viable, ONGC's move is sure to give a major boost to a number of natural gas-based industries in the country.

A senior executive of ONGC recently met the chairman of Coal India Ltd (CIL) with a proposal for setting up underground coal gasification projects jointly with it. In order to expedite the process, the executive is understood to have handed over a draft of an MoU for CIL's consideration. In other words, ONGC intends to go ahead with the proposed coal gas project in collaboration with CIL. Hence, the need for an MoU.

ONGC is learnt to have identified NMRC-Skochinsky Institute of Mining, Russia, as a consultant for the UCG application. The UCG process is a new method for exploitation of coal deposits by "in-situ" coal conversion to a fuel.

Under the process in question there is no need to develop a virgin mine.

CIL has been approached because it has many identified virgin coal blocks under its command, which are planned to be developed during the Tenth and Eleventh Plans.

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