Underground Coal Gasification has been in use for many years in the gasification industry and it is seeing increasing use to produce synthesis gas for production of wide range of chemicals. As petroleum is in high demand due to limited resources, underground coal gasification can serve as an alternative technology to produce other grades of fuel, such as methanol (Tomasz Chmielniak, 2002). Likewise due to the characteristics of being a fuel, methanol has cultivated interest among researchers as it might have the potential to replace petroleum. Furthermore, methanol poses no threat for the environment particularly for ozone-layer depletion, making it attractive in the fuel source industry (Methanex, 2002). In the recent years there have been major improvements that have taken place in gasification and gas turbine technologies as well as a high degree of system integration that efficiently recovers and uses waste heat. The aim of this project is to demonstrate commercial market applications for the as-produced methanol from underground coal gasification, to simulate gasification conditions and based on the end-results; make comparison with petroleum based on financial and performance aspects.