SAPEX and Linc Energy join forces for new SA coal-to-gas project

Energy production from South Australia could take on a new dimension following....

  Energy production from South Australia could take on a new dimension following an agreement between Adelaide-based SAPEX Limited and Brisbane-based clean coal technology company, Linc Energy.Under a Memorandum of Understanding signed by the two companies, Linc will identify suitable locations within SAPEX’s vast South Australian licence areas to establish Underground Coal Gasification fields for the production of low greenhouse gas emissions power, and environmentally friendly Coal to Liquids (CTL) diesel.SAPEX and Linc have both said they intend to then enter into a formal joint venture agreement to commercialise such suitable resources.SAPEX Managing Director, Andrew Andrejewskis said the company was looking forward to working with Linc Energy on developing the potential of the large coal deposits in SAPEX’s licence area in South Australia.“This is the first step in our strategy to seek out value-adding opportunities for coal,” Mr Andrejewskis said.SAPEX – an oil and gas exploration company based in South Australia – holds seven Petroleum Exploration Leases and two mining Exploration Leases that together cover almost the entire prospective area of the Arckaringa Basin in Central South Australia.The company is exploring for oil, gas and coal seam gas in the basin and also holds a Petroleum Exploration Lease near Adelaide, which has significant coal deposits that may be suitable for Underground Coal Gasification and Coal Seam Gas.