BPCL Signs MoU With Coal India for Setting up a Coal to Synthetic Natural Gas Project

On December 02, 2024, Bharat Petroleum Corporation Limited (BPCL) and Coal India Limited (CIL), both Maharatna PSUs under the Government of India, entered into a Non-Binding Memorandum of Understanding (MoU) to explore the potential of setting up a Coal to Synthetic Natural Gas (SNG) project.

BPCL and CIL Partner for Clean Energy Project

The agreement was signed on December 2, 2024, in Mumbai, aiming to leverage surface coal gasification technology at Western Coalfields Limited (WCL), a subsidiary of CIL.

This collaboration seeks to utiliSe India’s abundant coal reserves to produce clean synthetic natural gas, which aligns with the country’s energy transition goals.

This collaboration between two state-owned giants comes as part of India’s broader effort to reduce dependence on imported energy sources and improve domestic energy production.

BPCL and CIL Share Price Performance

On December 03, 2024, Bharat Petroleum Corporation share price traded 0.39% lower at ₹293 at 12:15 PM on the NSE. Meanwhile, Coal India share price traded 0.44% lower at ₹419.85 on the NSE.

BPCL and CIL Q2 FY25 Financial Performance

The oil marketing company posted a 20% decline in consolidated profit, which stood at ₹2,397.23 crore for the July-September quarter, down from ₹3,104.77 crore in the previous quarter. Revenue also decreased by 9%, reaching ₹1,02,790.39 crore.

State-owned Coal India Ltd (CIL) reported a 22% drop in consolidated profit, falling to ₹6,274.80 crore for Q2 FY25, down from ₹8,048.64 crore last year. The company’s sales for the quarter declined to ₹27,271.30 crore from ₹29,978.01 crore in the same period last year.

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