NTPC Plans Rs 10,000 Crore Coal-to-SNG Project in Chhattisgarh

NTPC Limited has announced plans to set up a coal-to-synthetic natural gas (SNG) project in Chhattisgarh with an estimated capital expenditure of ₹10,000 crore, marking a diversification of its coal-based operations beyond power generation. The project is proposed at Talaipalli, where NTPC already operates captive coal mining assets.

The facility will convert coal into synthetic natural gas, with a planned production capacity of around 5 lakh tonnes per annum. The plant is expected to consume nearly 25 lakh tonnes of coal annually and will be developed on approximately 150 acres of land. Coal required for the project will be sourced from NTPC’s nearby captive mines, ensuring fuel availability and supply stability.

NTPC officials said the company is currently evaluating coal gasification technology options for coal beneficiation, gasification, water-gas shift reactions and methanation, which are critical processes in SNG production. Technology partnerships are expected to be finalised by the last quarter of FY26. Once these arrangements are in place, the project will move into detailed engineering, land preparation and infrastructure development stages.

The coal-to-SNG initiative is being driven through NTPC’s research and development arm, NTPC Energy Technology Research Alliance (NETRA). It aligns with the company’s stated objective of improving coal utilisation efficiency while reducing dependence on imported natural gas. The targeted production cost of synthetic gas is estimated at around USD 12 per MMBTU, which could make it viable for domestic consumption.

The project will require significant water and power inputs, and planning for these utilities is underway. NTPC is also assessing regulatory approvals and environmental clearances needed for implementation.

Also Read: Safran Aircraft Engines Boosts India Presence With New Investments

Industry analysts say the project reflects a broader effort by Indian energy companies to explore alternative uses of domestic coal. If executed as planned, the Talaipalli SNG plant could serve as a reference for similar projects in other coal-rich regions and support India’s energy security objectives by expanding non-imported gas supplies.