Coal India Looks to Syngas as a Safety Net for Growing Gas‑Supply Worries

Coal India Limited (CIL), the country’s biggest coal miner, has quietly started mapping out a new kind of project – one that will convert its own coal into synthetic natural gas, or syngas. The move is a direct response to the uneasy feeling that’s been creeping through the power sector: natural‑gas supplies are becoming scarcer and pricier, and the country’s appetite for gas‑fired power is only growing.

In a recent briefing, senior officials told the press that CIL is looking at setting up several syngas production units, each capable of feeding a 500‑megawatt (MW) gas‑turbine. While the exact number of plants is still under discussion, the company hinted that the initial phase could see two to three units go online by 2028. The idea is simple – use coal‑gasification technology to produce a clean‑burning gas that can be piped straight to CIL’s own power plants, or even sold to third‑party generators.

Why the sudden interest? Over the past year, India’s demand for natural gas has surged, driven by tighter emissions norms and the push to replace older, coal‑heavy plants. At the same time, import‑linked LNG has become more expensive, and domestic pipeline constraints have left many power houses scrambling for a reliable feedstock. “We cannot keep betting on a single source for gas,” said a CIL spokesperson. “Syngas gives us a home‑grown alternative that leverages the coal reserves we already own.”

The technology behind the plan isn’t brand‑new, but it’s gaining traction worldwide. Gasification involves heating coal in an oxygen‑deficient environment, producing a mixture of carbon monoxide and hydrogen – the core ingredients of syngas. That gas can be cleaned, enriched, and used much like conventional natural gas. International firms such as Linde and Air Liquide have already signed memorandums of understanding with Indian partners to supply the required gas‑cleaning equipment.

From a financial standpoint, the projects are expected to be capital‑intensive, with estimates ranging between $300‑$400 million per unit. However, CIL is banking on the long‑term savings that come from reduced LNG import bills and the ability to lock in a stable fuel price for its power assets. The company also hopes the venture will open up new revenue streams – excess syngas could be sold into the domestic gas grid, helping the nation meet its own gas‑demand targets.

Critics, however, caution that coal‑based syngas still emits carbon, albeit less than raw coal combustion. Environmental groups have urged CIL to pair the gasification plants with carbon‑capture and storage (CCS) solutions to keep the projects aligned with India’s climate commitments. CIL’s response has been cautiously optimistic: “We are exploring CCS as part of the broader project design, but the technology is still evolving and needs to be economically viable.”

Should the plans materialise, they could mark a significant shift in how India balances its energy mix – blending indigenous coal resources with cleaner‑burning gas to shore up energy security. For now, the company is moving ahead with feasibility studies, site selection, and regulatory clearances. If all goes well, the first syngas plant could start churning out gas by the end of 2027, providing a welcome cushion against the volatility of global gas markets.