India pushes coal gasification to reduce import risks
By Suryamurthy Energy security often becomes a national priority only when a crisis erupts. The current conflict spreading across West Asia has once again reminded India how fragile global energy supply chains can be — and how deeply its own economy remains tied to them. The disruption of tanker routes through the Strait of Hormuz, […] The article India pushes coal gasification to reduce import…
India is prioritizing coal gasification to reduce its reliance on imported hydrocarbons, particularly following the recent geopolitical tensions in West Asia. Almost half of India's crude imports, as well as significant volumes of LNG and LPG, used to pass through the Strait of Hormuz. These imports account for approximately $98.7 billion worth of goods, with petroleum alone representing about $70 billion, or 49% of India's total crude imports.
Natural gas dependence is also high, with 68% of India's LNG imports coming from the region, and 47% of LPG shipments originating from Gulf countries. About 85% of India's crude oil is imported, making each $10 increase in oil prices add $12–15 billion to the national import bill. India possesses around 401 billion tonnes of coal reserves, with 111 billion tonnes considered extractable.
Coal mining currently generates $23–24 billion in annual production value and supports about half a million direct jobs and several million indirect ones. Coal gasification converts coal into synthesis gas, which can then be transformed into various industrial products, including methanol, ammonia, synthetic natural gas, and hydrogen.
Methanol is used in plastics manufacturing, pharmaceuticals, fuel blending, and chemical processing, while ammonia forms the backbone of fertiliser production. Hydrogen is central to steelmaking and emerging clean-energy technologies. The Indian government has allocated ₹3,525 crore, or approximately $425 million, in the 2026-27 budget to promote coal and lignite gasification projects.
The Ministry of Coal expects these projects to utilise about 12 million tonnes of coal annually, ultimately aiming to gasify 100 million tonnes of coal per year by 2030. This strategic shift could potentially reshape India's energy and chemical supply chains, making the country less exposed to geopolitical disruptions.
Written by urgent.news from Arabian Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
