No that's not correct. I think you might have misunderstood him....

No that's not correct. I think you might have misunderstood him. Having methane present in the seam actually increases the calorific value of the resultant syngas because methane has a much higher CV. So for power generation you would want CSG.

I think JH probably meant the PROCESSING of the syngas is where CSG needs to be removed if you are running it through a FT reactor. This is because methane doesn't react in the FT and just dilutes the process. So if you were running a UCG-GTL plant (like CTP has proposed) you would want to separate the methane out before you put the syngas through FT.

This would not be a problem though because you have a perfect use for this residual methane - power generation to power your GTL plant! Particularly if it's out in the middle of the Pedirka Basin so you need a small power station on site.

But since CTP almost certainly aren't going to have any major amounts of methane from CSG, this is a moot point.