Natural gas is held under pressure in coal seams, absorbed onto the surface of coal particles. Pumping water out of the coal cleats and fractures reduces pressure and allows the gas to diffuse out. Coal seam gas infrastructure requires high well densities and transport systems to move both gas and water. The latest coal seam gas to LNG projects in Queensland have costs over $20 billion. Queensland currently produces more coal seam gas than it consumes domestically.

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3. Natural Gas (mainly methane) is held in Coal Matrix under pressure.
Different to Conventional Gas – Porous sandstone capped by impermeable rock
Coal is like a sponge that absorbs the gas in the coal matrix. Absorbed in mono‐molecular
layer on surface of coal particle
The coal cleats and fractures are filled with water.
Conditions – porosity – void space between grains that give the coal the capacity to retain
fluid
Permeability – how the pores are interconnected – ability to transmit or allow gas flow.
Coal Seams range from typically 2m to 20 m thick
Depth: 200 m to 1,000 m
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4. Gas is held in Coal Matrix under pressure – normally water pressure at depth under ground
is enough to “hold” gas in coal pores. Absorbed in mono‐molecular layer on surface of coal
particle
The coal cleats and fractures are filled with water
Pumping the water to the surface reduces the pressure in the surrounding area and the gas
then is able to diffuse from the coal pores
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5. Infrastructure requirements – Dalby, Queensland.
High Well density
Each of the low pressure wells needs two transport systems – one for gas and one for water
Typical well – up to 100 kPa pressure, footprint of 10m x 10 m and 1 well per km2
Collection nodes then go to compressor station.
2 types:
Field Compressor station ~ typically 25 km apart, outlet pressure up to 1,000 kPa, footprint
100 m x 50 m
Central Gas Compressor hubs ~ Outlet pressure up to 10,200 kPa footprint 600 m x 250 m
From here – connect to the export trunklines.
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9. Latest Cost of LNG Projects
GLNG – AUD 20.5 bn
QCLNG ‐ AUD 24.4 bn
APLNG ‐ AUD 24.7 bn
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12. Queensland – 20,000 litres of water per well per day. CSIRO, “Coal Seam Gas – Produced
Water and Site Management”, April 2012 or 7.3 ML per well per year
New South Wales – 150 litres of water per well per day or 0.055 ML per well per year AGL
– Camden Gas Project Presentation , 10th April, 2013
Well typically produces from 10‐15 years up to 20‐30 years
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14. Fraccing is required where coal has poor fracture and poor permeability
Involves pressurised injection of water, sand‐sized particles plus additives (~1%)
Particles hold fractures open
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16. Points to note
Both Queensland and New South Wales have significant reserves of Coal Seam Gas
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17. Definition of Reserves
1P means “Proven” – Confidence Level of better than 90% of being produced
2P means “Proven and Probable” – Probable means Confidence Level of better than 50% of
being produced
3P means “Proven and Probable and Possible “ – Possible means Confidence Level of
significant but less than 50% of being produced
Source: UK Government Department of Energy and Climate Change
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18. Origin Energy (APLNG) – largest Reserve base of three LNG producers
Santos (GLNG) – smallest reserve of three producers – and less than Arrow Energy
Interesting situation!
Westside just signed a deal to supply gas to Santos – GLNG
AGL – 143 wells drilled, 89 producing wells at Camden, 15 wells at Gloucester
GLNG: 2,650 wells
QCLNG: > 2,000 wells
APLNG: 564 wells – need 1,100 by mid 2015
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20. 34% of Total East Coast Gas production from CSG.
Bass Strait – steady
Cooper Basin – significant decline over last ten years
Current Total domestic demand for East Coast is 687 PJ/year (Qld, NSW, Victoria, Tasmania,
and South Australia)
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21. Largest State – Victoria!
Qld currently produces more CSG than it consumes
Essentially all NSW gas is imported from Victoria and South Australia (AGL Camden)
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22. Interesting – Power Generation expected to fail annually by 9.8% from 2014 to 2022
Driven by
• consumers response to rising electricity prices
• Renewables (solar and wind power generation)
• Energy efficiency measures
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23. Only significant issue – NSW Clarence‐Morton is currently effectively stranded gas, and
Gunnedah Region is similar
Pipelines planned
MAJOR PIPELINES:
• Moomba Sydney Pipeline (MSP) [APA] 1976
• Queensland Gas Pipeline (QGP) [Jemena] Wallumbilla to Gladstone 1991
• Roma Brisbane Pipeline (RBP) [APA] Wallumbilla to to Brisbane March
1969
• South West Queensland Pipeline (SWQP) [APA] Ballera to Wallumbilla 1996
• Carpentaria Gas Pipeline (CGP) [APA] Ballera to Mount Isa 1998
• Moomba Adelaide Pipeline System (MAPS) [Epic Energy – QIC] Nov
1969
• Eastern Gas Pipeline (EGP) [Jemena] Longford to Smithfield
2000
• SEA Gas Pipeline [APA and REST] Otway (Iona) to Pelican Point 2004
• Tasmanian Gas Pipeline (TGP) [Palisade Investment Partners] Longford to Bell Bay
2002
• North Queensland Gas Pipeline (NQGP) [Victorian Funds Management Corp]
Moranbah to Townsville 2004
• QSN Link (QSN) [APA] Ballera to Moomba 2009
• Longford Melbourne (Dandenong) Pipeline (LMP) [APA] March
1969
• South West Pipeline (SWP) [APA] Otway (Iona) to Lara – Brooklyn 1999
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24. • New South Wales – Victoria Interconnect (NVI) [APA]
Barnawatha – Culcairn – Wagga Wagga 1998
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25. 9 million tonnes per annum is 25,000 tonnes per day or 1,000 tonnes per hour (cf
Woodside – 5 trains all up 16.3 million tonnes per annum)
Reserves – not too far out
Current Production less than 20% of LNG plant total demand
Latest Cost of LNG Projects
GLNG – AUD 20.5 bn
QCLNG ‐ AUD 24.4 bn
APLNG ‐ AUD 24.7 bn
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29. Process Flow Diagram
Amine – removes CO2
Dehydration – molecular sieves to remove water
Propane – Gets Gas to ‐35°C
Ethylene – Gets Gas to ‐95°C
Methane– Gets Gas to ‐155°C
Flash to ‐162°C
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30. All up
Three facilities – each like this….. (GLNG)
Taken in October 2013
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31. Three facilities – each like this….. (GLNG)
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32. Modularisated construction
Long as 17 cars parked nose to tail (76 meters)
Wide as Olympic Swimming pool
Tall as six storey building
Weighs twice as much as an A‐380 – world’s largest passenger aircraft (1,292 tonnes)
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33. All up
Six Tanks 48 meters high, 79 meters in diameter
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34. All up
Six Tanks 48 meters high, 79 meters in diameter
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35. All up
Six Tanks 48 meters high, 79 meters in diameter
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