Coal to Syn Gas
While GAIL Q3 results net profit jump of 700% could be misleading , as it is on a low base effect , but it is worth mentioning here that the future prospects of Gail looks bright if the PSU can put its act together and delivers what it is expected to deliver.
The government has already approved the Coal Gasification project by setting up of a Coal-to-SNG (Synthetic Natural Gas) project through a joint venture between Coal India and GAIL at a cost of Rs 13000 crore. ( as earlier posted in this thread)
We have abundant coal to last for next 300 years and GAIL need not have to depend upon LNG imports in future.
Apart from Methane - natural gas, GAIL can also produce Blue hydrogen through Coal gasification route which may have tremendous potential due to its huge requirement for all user industries such as Fertiliser , steel , refineries , Auto fuel , kitchen fuel , even producing electricity in India with huge export potential.
Discl : Invested in CoaL India and GAIL both. i may be biased. This is not an investment advice. PSU stocks in general are highly volatile and subject to frequent govt change policy… Moreover , QoQ performance may be erratic.
Also the project may take time to complete its commissioning or even be abandoned.
please do your own assesment before investing.
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