(EnergyAsia, April 11 2011, Monday) — Australia’s Cougar Energy Limited said it is making progress on its underground coal gasification (UCG) projects in China but not in Western Australia state.

The ASX-listed company said it has signed a co-operation agreement with Inner Mongolia DeTailong Investment Energy Ltd for the cooperation and commercialisation of a UCG project at the Wu Ni Te coal mine in the Inner Mongolia Autonomous Region.

The agreement sets out the basis of the co-investment and development of the Wu Ni Te UCG project, which will operate under an equal joint venture. Its commercialisation will be subject to receipt of project registrations and the standard procedures of evaluation and financing.

Cougar said the agreement forms part of an application for project registration which has been lodged with the authorities in Xilinhot. A registration, expected sometime this month, will allow a drilling programme to start shortly at the site for the proposed UCG trial plant.

Separately, Cougar said it is continuing discussions with Limitless International Holdings Pty Ltd (LIH) and awaiting further technical data on coal deposits from the Chinese firm which will enable them to advance on their proposed joint venture agreement and subscription of capital.

LIH is making arrangements for a joint meeting in mid-April with Beijing government officials to present UCG development proposals for XinJiang province.

In Western Australia, Cougar Energy said it has been unable to progress “constructive discussions” with Eneabba Gas Limited on developing a proposed UCG project.