South Australian gas cache owner battles market sceptics

Independent confirmation of a large volume of gas reserves in South Australia that could help solve the east coast gas crisis is being largely dismissed by energy analysts and some buyers amid doubts about the economics and environmental credentials of a production process that has been banned in Queensland.

Leigh Creek Energy's success last month in securing certification of 1153 petajoules of "2P" reserves for its underground coal gasification (UCG) project in an abandoned coal field has increased interest in the project, and has triggered "a lot of phone calls," said managing director Phil Staveley. (2P reserves are those deemed "proven and probable".)