Coal-to-SNG project India: Chinese technology shortlist faces regulatory hurdle
India's flagship Coal-to-SNG project India is entering a critical phase where technology selection may become more complicated than engineering execution. Coal Gas India Limited (CGIL), the joint venture of GAIL and Coal India Limited, has shortlisted four gasification technology licensors for its Bardhaman coal-to-synthetic natural gas project. However, two of these licensors—SinopecTech and Zhongshi—are Chinese companies, bringing India's land-border procurement regulations into focus. This regulatory uncertainty could significantly influence bidder strategy before the tender reaches its final stage. Indian Petroplus analysis indicates that the issue is no longer limited to technology availability but extends to regulatory eligibility and commercial execution.
The Coal-to-SNG project India tender requires bidders to partner with one of the approved licensors while also meeting stringent financial and technical qualification criteria under a lump-sum turnkey EPC contract. Although four licensors appear on paper, uncertainty over DPIIT registration requirements for the Chinese companies may practically leave bidders with only Air Products and Choren as immediately deployable options. Such a situation could reduce competitive intensity, strengthen the negotiating position of unrestricted licensors and potentially increase overall project costs.
The tender has already witnessed numerous corrigenda, multiple rounds of bidder clarifications and repeated deadline extensions, indicating the complexity surrounding technology selection. The separate methanation package also reflects tightening qualification norms around proven SNG operating references. Coal-to-SNG project India therefore represents not only India's largest gasification initiative but also a test of how strategic industrial projects balance global technology access with national procurement policy. Indian Petroplus analysis believes the eventual resolution of this licensing issue will influence future coal gasification tenders across the country, Coal to SNG, Coal Gasification, Synthetic Natural Gas, SNG Project, Coal Gas India, GAIL, Coal India.