As we've previously explained and documented, indirect processes for the conversion of Coal, into more versatile hydrocarbons, entail an initial gasification of the Coal, which forms the Hydrogen-Carbon Monoxide mixture known as synthesis gas, or "syngas"; which gas mixture is then catalytically condensed, via a number of processes that are well-known and well-established in the petroleum industry, and made thereby to form gaseous and liquid hydrocarbons.
Such gasification of Coal is actually a controlled oxidation process; a limited "burning" of it, with a reduced amount of Oxygen, so that the more reactive Carbon Monoxide is formed preferentially to Carbon Dioxide.