Power Play: BPCL & Coal India Team Up to Transform Coal into Gas

Bharat Petroleum Corporation Ltd (BPCL) and Coal India have approved the formation of a joint venture (JV) to develop a coal gasification project at Western Coalfields in Maharashtra.

The proposed JV will focus on producing synthetic natural gas (SNG) as a substitute for imported natural gas, supporting India’s energy security objectives. Coal India will hold a 51 percent stake in the venture, while BPCL will own the remaining 49 percent. The project will utilise cleaner coal gasification technologies and is expected to help reduce the country’s dependence on energy imports.

BPCL stated that key terms of the definitive agreements, including project cost, investment structure, and share capital, will be finalised following the completion of a detailed feasibility study and preparation of the project report. The collaboration combines Coal India’s coal production capabilities with BPCL’s expertise in refining and gas marketing, and aligns with the government’s broader goals of enhancing energy security, promoting sustainable industrial growth, and reducing reliance on imported fuels.

News by Rahul Yelligetti.