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ONGC mulls using Shell tech for SCG facility

Sify.com (India): ONGC mulls using Shell tech for SCG facility

“Shell is a leading surface coal gasification technology provider in the world.”

Saturday, 10 September 2005

Kolkata: ONGC seems to be adding a new twist to its plan to enter into the coal gasification business.

In addition to its plans for underground coal gasification (UCG), in technical collaboration with the Stochinsky Institute of Russia, ONGC is now exploring the possibility of setting up a surface coal gasification (SCG) facility in West Bengal using Shell technology.

According to sources, the company has already held negotiations with Shell in this regard and may also consider taking the joint venture route with a foreign major.

Alternatively, ONGC will set up the unit in technical collaboration with Shell.

The pre-feasibility study for the SCG project was launched recently.

Shell is a leading surface coal gasification technology provider in the world.

Apart from ONGC, GAIL (India) has also proposed to set up an SCG unit at Durgapur in West Bengal.

On this, the ONGC Chairman, Subir Raha, said: “We are now considering setting up a surface coal gasification facility and are yet to decide on it. We expect to come up with some firm proposals in the next 3-4 months.”

Meanwhile, the pre-feasibility report for the UCG project has been prepared and ONGC has launched a pilot gasification project in collaboration with Coal India Ltd.

The results of the pilot project would be available in a few months following which a joint venture of ONGC and CIL is expected to be moved for commercial production.

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