COAL SEAM GAS EXPLORATION, DEVELOPMENT AND RESOURCES IN AUSTRALIA: A NATIONAL PERSPECTIVE

Abstract

A total of 2,223 PJ of proved plus probable gas reserves has been identified in coal seam gas fields and pilot production areas in Australia. The production of coal seam gas is rapidly growing, reaching about 40 PJ per year in 2003. A total of more than 108 PJ will be supplied annually by the end of 2007 under existing contracts, representing about 9% of Australia’s projected total primary consumption of natural gas. About two thirds of Queensland’s natural gas consumption will be met by coal seam gas by the end of 2007. Further expansion of the coal seam gas industry depends largely on the medium-term production performance of the pioneering production projects now in operation.

The long-term production performance of a coal seam gas well is not well understood. Analogues of conventional natural gas have often been applied to the estimation process of coal seam gas reserves without proper consideration of the fundamental differences in trapping mechanisms and production techniques. Definitions of petroleum reserves recommended by various organisations are not always applicable to coal seam gas, and the inconsistent application of reserves definitions may have resulted in inconsistencies in reserves reporting in Australia.