NTPC to set up coal-to-SNG project at ₹10,000 cr capex in Chhattisgarh

NTPC will set up its coal-to-synthetic natural gas facility in Chhattisgarh at an investment of around ₹10,000 crore, a senior company official said.

The company is looking for technology tie-ups for various processes, like coal beneficiation and gasification, to produce synthetic natural gas (SNG), the official said, requesting anonymity.

Also Read: NTPC Q2 standalone net profit flat at ₹4,653 crore on higher EBITDA; revenue up

NTPC will look to produce SNG at a cost of around USD 12 million British thermal unit (MMBTU).

In October 2025, NTPC announced signing an agreement with Engineers India Limited (EIL) to develop a coal-to-synthetic natural gas (SNG) facility.

The energy giant had not disclosed any details of the proposed project, including the location. It said the facility would utilise high-ash Indian coal from the company’s captive mines.

NETRA, the R&D wing of NTPC, is actively leading the initiative under its broader vision of ’greening the coal’ and advancing carbon capture and utilisation technologies. As per the official, the project will be set up at Talaipalli in Chhattisgarh at an investment of around ₹10,000 crore.

The 5 lakh tonnes per annum SNG project would be spread over an area of 150 acres and consume 25 lakh tonnes of coal sourced from NTPC mines at Talaipalli.

The technology part of the project is expected to be finalised within the last quarter of FY26, the official said, adding that coal-to-SNG involves coal beneficication, coal gasification, water gas shift and methanation of coal.

NTPC is in advanced stages of various international tie-ups.

After that, NTPC will start preparations for other requirements like land, power and water.

Coal gasification is emerging as a key enabler for the sustainable utilisation of domestic coal reserves, reducing dependency on imported fuels and lowering emissions.

Also Read: NTPC pushes for nuclear plans, looks for international collaborations

NTPC may look for commercial benefits from the project as the syn gas produced from coal gasification is usable in producing synthetic natural gas (SNG), energy fuel (methanol & ethanol), ammonia for fertilisers and petro-chemicals.