Shell and Anglo have formed the global alliance to pursue "clean", coal-converting energy opportunities and have nominated the Monash project as their leading candidate, the Age newspaper reported.
Formation of the alliance came ahead of an expected mid-year decision to first build a $300-400 million demonstration plant for the Monash project, the newspaper said.
It is promoted as "clean" energy because carbon dioxide emissions are to be captured for injection into the nearby exhausted Bass Strait gas reservoirs.
If the process is viable, the $5 billion energy complex could be built within the next decade.
The Monash project envisages a new coal mine, drying and gasification plant, carbon dioxide capture and storage, and a gas-to-liquids plant with associated power generation.
