INTERVIEW-Australia's Caltex eyes opportunities in coal, gas

* Caltex says to look beyond oil refining for growth

* In early stage of exploring opportunities in LNG, UCG

PERTH, Nov 19 - Caltex Australia Ltd <CTX.AX>, the country's largest refiner, is looking beyond oil refining and banking on the country's vast reserves of coal and natural gas to support its next phase of its growth, its chief executive said on Thursday.

CEO Julian Segal, who took the reins of Caltex in July, told Reuters in an interview that Asian fuel consumption, underpinned by growth in China and India, would grow dramatically, offering new opportunities for growth.

"Considering how Australia is very rich in gas and coals, its natural for us to look at LNG and underground coal gasification as the next potential growth area."

"There will be a huge population growth in the region, so we know there will be a big demand for energy. As demand for energy rises, there is also a need for cleaner fuels," Segal said.

The traditional business of oil refining is likely to lose its relevance as the world moves towards cleaner fuels in coming decades, he added.

Still, Segal said the plans were at a very early stage, and would not say if Caltex was in discussions with any third parties.

Underground coal gasification is a relatively new industry that is looking to convert coal into cleaner-burning synthetic natural gas or liquid fuels, such as diesel.

Other options for growth being explored included getting into the production of biofuels, which already make up about 10 percent of Caltex's sales, and domestic LNG for use in trucks.

Australia's refining sector faces stiff price competition from the nearby Asian refineries, while disadvantages in operating and capital costs, along with a looming carbon emissions trading regime, also make it difficult for companies to invest in building new refineries.

But Segal said Australia's high fuel quality standards means its products would command a price premium, while a robust mining sector and a high population would also drive demand for fuels.

In May, Caltex said it plans to buy ExxonMobil Corp's <XOM.N> 302 service stations located on Australia's east coast for A$300 million, a move that could boost its share of Australia's fuel retail market to 22 percent from 16 percent.

The acquisition is being reviewed by Australia's competition watchdog and a ruling is scheduled on Dec. 2.

Caltex, 50-percent owned by Chevron Corp <CVX.N> runs two oil refineries that account for about 35 percent of Australia's refining capacity.