CSG in Australia

In the last six years CSG has become a key component of Eastern Australia’s energy supply, growing by 16.3% in the year to 30 September 2009 according to EnergyQuest. Increasing demand for power generation from gas in NSW & Queensland, as well as a potential gas supply shortfall from 2010-12 as Cooper Basin production declines, will support further growth in CSG.

Coal seam gas, like conventional natural gas, is mostly methane. It is attached to the surface of coal particles by adsorption and held there by the pressure of water that permeates the cleats of the coal seams.

The gas is extracted by drilling into coal seams and pumping out the water, reducing the pressure and releasing the gas. It is then gathered for piping to gas markets.

An environmental fuel

While long-term we need to move to renewable energy resources, coal seam gas is among the best immediate options environmentally. Gas is less polluting, more responsive, more efficient and has a lower greenhouse gas impact than coal for power generation.
The water that’s pumped out to release the gas is also valuable. In some areas it can be used without treatment for stock or agricultural use. In other areas it’s usable with suitable treatment.

Technical developments

The continuing development of new drilling and completion techniques is having a profound impact on the ability to commercially extract CSG from different coals. Every coal is different and requires a matching technique.

Close to major markets

Most of Australia’s coal seam gas is in New South Wales and Queensland; much of it fairly close to existing major gas pipelines. This helps make coal seam gas attractive to power station operators, large industrial users and gas retailers. As for timing, with the gas reservoirs of the Cooper Basin in South Australia now declining, the east coast of the country has been looking for new sources, and CSG is meeting that demand with a significant portion of Queensland's gas supply being supplied by CSG.