Underground coal gasification (UCG) has the potential to provide a source of energy or chemical feedstock derived from coal seams, where traditional mining methods are not suitable or are uneconomical. This paper presents the life cycle inventory models developed for the UCG processes and three alternative syngas utilisation options with and without CO2 capture and storage. The paper compares the life cycle carbon footprint of two different conventional above ground coal fired power generation options with UCG Integrated Gasification Combined Cycle power generation with/without CCS for two different lignites and one bituminous coal. One of the lignites is then used to compare the life cycle performance of different syngas utilisation options: power generation, ammonia production with power generation, and methanol production with power generation. It was found that the life cycle carbon footprint of conventional above ground coal fired power generation is very much dependent on the in-situ methane content of the coal used, and methane emissions experienced during mining and accompanying upstream processes, whereas the same for UCG-IGCC power depends more on the process dependent syngas composition. UCG methanol production with associated power and CCS is shown to release more life cycle CO2-eq emissions per tonne of lignite consumed than that of UCG ammonia production with associated power and CCS and UCG CCGT power generation with CCS. Furthermore, when chemicals production from UCG is considered as the main objective, the most substantial improvements in comparison to conventional methods are associated with UCG ammonia process per tonne of chemical produced.