Credit woes have dealt a major setback to Consol Energy’s plans for an $800 million plant capable of converting coal into methanol and 100 million gallons of gasoline annually.

Consol remains committed to building a coal gasification plant in northern West Virginia, but will be looking for a new technology partner, spokesman Tom Hoffman said Thursday.

Houston-based Synthesis Energy Systems Inc. has allowed its development agreement with Consol to expire, saying it can’t secure financing in the current credit market.

“We really haven’t changed our mind in terms of our enthusiasm to do one of these projects,” Hoffman said. “We’re pursuing it because we believe there’s going to come a time when converting coal to gasoline or other valuable liquids or gases is going to make sense.”

The news came as Consol reported stronger-than-expected third-quarter financial results.

The Canonsburg, Pa.-based company said it earned $90.1 million, or 49 cents per share, in the three-month period that ended Sept. 30. Consol lost $5.4 million, or 3 cents per share, in third-quarter 2007, which was affected by a roof collapse that temporarily closed its Buchanan Mine No. 1 in Virginia.

Revenue climbed 35.1 percent to $1.2 billion in third-quarter 2008 from $868.4 million in third-quarter 2007.

Analysts surveyed by Thomson Reuters, on average, expected earnings of 46 cents per share on revenue of $1.1 billion.

“The strength of coal and gas markets over the last twelve months has allowed us to continually and systematically lock in higher prices that drive the average realized price up as older contracts are replaced with newer, higher priced ones,” Chief Executive Brett Harvey said in a statement. Besides coal mines in Pennsylvania, West Virginia, Virginia, Kentucky, Ohio and Utah, Consol owns a majority stake in CNX Gas Corp.

The proposed gasification plant would have added gasoline and methanol manufacturing to Consol’s portfolio. The plant announced last July was to be capable of producing 720,000 metric tons of methanol for chemical manufacturing and 100 million gallons of 87-octane unleaded gasoline annually. Consol and Synthesis said at the time they hoped to complete the project in Benwood, in Marshall County, by 2012.

Gov. Joe Manchin spoke with Consol about the project Wednesday and came away reassured, spokeswoman Lara Ramsburg said.

“While there may be a change in the partner with Consol, that does not diminish their commitment or our commitment to doing our best to move this forward,” she said. “We are not concerned at this point.”

The Manchin administration and the Regional Economic Development Partnership in Ohio, Marshall and Wetzel counties had agreed to provide financing and tax incentives over a 10-year period for the project.

Consol’s stock fell $1.52, or 5.5 percent, to $26.31 Thursday.