State-owned power giant NTPC has announced plans to establish a major Coal-to-Synthetic Natural Gas (SNG) project in Chhattisgarh with an estimated capital expenditure of around Rs 10,000 crore, marking a significant step towards cleaner coal utilisation and energy security.
The project will convert coal into pipeline-quality synthetic natural gas (SNG) using gasification technology, with the output to be blended into the national natural gas grid or supplied to nearby industries.
It is expected to produce around 1.5 to 2 million standard cubic metres of SNG per day, depending on the final configuration.
The facility will be located in Chhattisgarh, leveraging the state’s abundant coal reserves and proximity to existing infrastructure. NTPC aims to reduce carbon intensity through carbon capture and utilisation (CCU) features, aligning with India’s push for cleaner coal technologies and lower greenhouse gas emissions.
The project is part of NTPC’s broader diversification strategy into non-power businesses, including renewables, green hydrogen, and coal gasification. Once operational, it will create direct and indirect employment and support the government’s vision of energy transition while making use of domestic coal resources.
