GAIL to invest in plants in China
PM News Bureau
GAIL (India) Ltd is all set to venture into coal gasification activities in China. The company plans to invest in coal, methanol and petrochemical plants in the Shaanxi province.
During a recent visit of a high level team led by Proshanto Banerjee, CMD, GAIL, the company agreed to enter into a MoU with Shaanxi Huashan Chemical Industry group to carry out a feasibility study for setting up a coal-gasification based petrochemical plant for production of polyolefins and other products in the province where abundant coal at competitive price is available. The two companies will subsequently consider setting up a joint venture to implement the proposed project and set up distribution and marketing network in China.
GAIL will use domestic coal to produce synthesis gas or 'syngas' by using Shell Coal Gasification Process which will used for the first time in India. SCGP has an inherent capacity to handle high ash content and hence is suitable for Indian coal.
The company plans to set up a Rs 7,500 million coal gasification project in eastern India with coal handling capacity of 2,000 tonnes per day to produce 3.4 mmscmdof syngas. The industries in eastern India, which run on liquid fuel for their feedstock/fuel, will save huge costs when they use synthesis gas which can be made available at $ 3 per mmbtu.
[12 September 2005]