Oil and Gas News

Leigh Creek to provide Chinese with energy expertise

Leigh Creek Energy (LCK) has executed its first international joint venture (JV) agreement with China New Energy (CNE).

As part of the agreement, the company will provide in-situ gasification (ISG) project management and consultancy services to CNE, supplying knowledge and operational experience of ISG technology and commercialisation processes.

LCK managing director Phil Staveley said the JV with CNE would provide a pathway for the company to generate a revenue stream while it focuses on its Leigh Creek Energy project (LCEP).

“Our proven ISG operations have several environmental, safety and economic advantages. CNE sees several opportunities to work with us to maximise the return from its own and third parties’ mining assets by using ISG to convert its coals into gas for the production of hydrogen, power, pipeline quality gas or ammonia-based fertilisers,” Staveley said.

CNE has large commercial interests in underground coal resources in northern China’s Shanxi Province.

The purpose of the JV is for LCK to provide technical knowledge to assist CNE in developing its interests.

LCK’s knowledge and operations expertise has gained while developing the LCEP, including the commissioning and operation of the pre-commercial demonstration (PCD) facility in 2018 and 2019, and the recently awarded petroleum production licence.

Looking ahead, the company will start to evaluate the potential ISG sites in collaboration with CNE.

LCK’s major focus is to progress with the commercial stages of its namesake project, with the construction and operation of an initial 1 million tonne per annum urea fertiliser plant at Leigh Creek.

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