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ONGC pact with Neyveli Lignite

Special Correspondent

NEW DELHI: The State-owned Oil and Natural Gas Corporation (ONGC) on Saturday inked a memorandum of understanding (MoU) with Neyveli Lignite Corporation (NLC) for undertaking underground coal gasification (UCG) in lignite.

The agreement, signed by the ONGC Executive Director (R&D), D. M. Kale, and the NLC Director (Mines), K. S. Anandam, is a part of the oil major's plans to tap deep-seated energy resources. For this purpose, two pilot projects for underground coal gasification are to be set up, one in coal and the other in lignite. According to an ONGC statement here, four sites have been short-listed for the first project, three in Tamil Nadu and the fourth in Rajasthan.

Pilot project

The coal pilot project will be set up in collaboration with Coal India Limited (CIL).

To implement the UCG projects at various locations, ONGC has been tying up with local enterprises.

An MoU was signed with the Gujarat Mineral Development Corporation at Ahmedabad on September 19. More such MoUs are lined up with CIL, GIPCL and Singareni Collieries.

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