Leigh Creek Energy (ASX: LCK) has agreed with regulators on a pathway to commercialise its South Australian coal to gas and chemicals resource.
The company announced that the SA Department of Energy and Mining had confirmed that it had operated the pre-commercialisation demonstration stage of the project in accordance with environmental guidelines.
The demonstration (pictured) proved the the feasibility of underground gassification of the brown coal resource at Leigh Creek.
Now the company has agreed to produce an environmental impact report, provide seismic data, further drilling of the resource and develop field development plans.
Leigh Creek managing director, Phil Staveley said: “A pathway to obtain a commercial approval has been established.”
The company has proven and probable reserves of 1,153PJ of gas based on its coal resource, the equivalent to 1.1 trillion cubic feet or the size of the entire gas resource in the Cooper Basin.
Gas could be sold to retailers or utilised in a mooted chemicals plant nearby.
The company now has a pathway mapped out to satisfy regulators.
Staveley said: “The Department of Energy and Mines emphasised that Leigh Creek will have to provide a clear narrative of the data and information gained from the pre-commercial demonstration plant.
“All of these items are normal and standard. Leigh Creek continues to comply with these regulations,”
Picture: Leigh Creek Energy
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