Cougar Energy and Australia Petroleum have signed a terms sheet for a proposed joint venture to assess the potential to convert the underground coal gasification (UCG) gas to methane at Cougar’s coal deposit at EPC 1118 at Wandoan, located in the Surat Basin, Queensland.
In assessing the coal deposit, the Queensland Methane Joint Venture will conduct a pilot burn using oxygen injection to demonstrate the production of UCG gas suitable for conversion to methane.
The joint venture partners would then develop a methane production facility and potentially an LNG production facility.
Under the agreement, the partners also have the option to include further coal deposit interests of either party into the project at a later time.
In addition, Cougar Energy has reported that their flagship 400 MW UCG power project at Kingroy remains on track for commissioning of the pilot (pre-production) plant at the end of February 2010.
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