COAL SEAM METHANE—MEETING THE REQUIREMENTS OF BUYERS, FINANCIERS AND REGULATORS

Abstract

Significant work is taking place in Queensland and New South Wales to make the recovery of natural gas from coal seams (Coal Seam Methane) a viable industry. At this stage there are still some daunting hurdles to overcome. Australian buyers and financiers remain sceptical on resource risk and continuity of supply issues. In the USA commercial production has been taking place for 20 years, but the industry was only able to achieve credibility and viability by relying on tax breaks. Unfortunately, the same type of government incentives are not present in Australia. Whether, in the absence of these incentives, Australian producers can harness the resource on an economic basis remains to be seen.