COAL SEAM METHANE: THE FUTURE OF OPERATIONS IN NEW SOUTH WALES

Abstract

The coal seams of the coal basins in New South Wales contain vast resources of methane. The gas has been of interest in the past, principally because the inflow of significant quantities into coal mine workings is a danger to mine safety and reduces production. Drainage techniques have been introduced into deeper collieries but they have not proved to be totally effective.

Surface pre-drainage operations using hydraulic fracturing to stimulate gas production have been successful in the United States over recent years. The technique has yet to be successfully tested in New South Wales but if effective it will enable future mining areas to be drained prior to commencement of mining. The technique will also enable commercial production of large quantities of methane from both within and outside the coal mining areas.

Seven organisations have commenced or will soon commence the exploration and development of the State's coal seam methane resources. Total planned expenditure over the next two years is over $4 000 000. Other Australian and overseas organisations are actively reviewing investment opportunities.

Detailed exploration programs will be required prior to the commencement of operations because of the relative lack of data on the geology and gas resources of the basins. Differences exist between Australian and American coals and comparative reservoir and pilot studies will be required to determine the most effective pre-drainage methods. Potential markets exist in the State for methane and changes have been made to relevant legislation and administrative procedures to create incentives for exploration and production. Careful land-use planning will be required to ensure that the gas resource is not sterilised.