Gail planning MoU with Rashtriya Chemicals

Mumbai: Gail India Ltd (GAIL) has announced that the company will shortly be joining hands with Rashtriya Chemicals and Fertilizers Ltd (RCF) for jointly exploring potential of proposed surface coal gasification project in Talcher.

The Board of Directors of GAIL approved the signing of a Memorandum of Understanding (MoU) in its meeting held in New Delhi on October 17, 2007.

Under the MoU, GAIL will carry out techno-economic study of a commercial coal gasification plant, whereas RCF will carry out the techno-economic study of a commercial plant for utilising synthesis gas from the proposed coal gasification plant.

GAIL and RCF will jointly evaluate the coal gasification potential for the fertilizer industry.

The project will help produce 7.76 MMSCMD of synthesis gas (equivalent to 3,000 tonnes per day of ammonia). The estimated cost of proposed coal gasification project is Rs 2,400 crore.

GAIL will focus on the production and marketing of synthesis gas, which will be in line with its core function of gas handling.