Linc Energy, Sugico to Develop Underground Coal Gasification Projects in Indonesia

Linc Energy Ltd and PT Sugico Graha will develop underground coal gasification (UCG) projects in Indonesia.

Linc has entered into formal agreements with Sugico, which is in the early stages of developing two commercial UCG projects in Indonesia, to license its proprietary UCG technology.

The initial project, located in South Sumatra, will use UCG produced synthesis gas to generate electrical power. This project is in the concept phase of development. At this time, the first phase of the project is expected to be sanctioned and reach financial closure during 2016 and achieve designed specified performance during 2017, Linc said in a statement published Thursday.

Sugico will pay a licence fee of $17.5 million in two tranches.

The second project is located in South Kalimantan and will use UCG produced synthesis gas to produce chemicals. This project is currently in the concept phase of development, but is expected to be sanctioned in 2017, reach financial close during 2017 and achieve designed specified performance by 2020.