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Coal Seam Gas – A Sustainable
Australian Energy Source.
Mike Moraza | 15 June 2011 | Hunter Environmental Institute
NSW is heavily reliant on imported gas.
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› Cooper Basin
» Onshore
» Declining production
› Gippsland Basin
» Offshore
» Growing importance
› Bowen / Surat
» Onshore CSG
» Recently linked through AGL initiated
infrastructure (BWP and QSN pipelines)
› Sydney
» Onshore CSG
» Modest output close to market.
Rosalind Park gas plant, Camden.
ˆEast Coast Gas Network
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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The Hunter energy industry.
› 2 interdependent challenges:
»
Expand energy supplies to
meet growing consumer
demand
»
Address the social and
ecological risks posed by
rising greenhouse gas
emissions
› 2 possible solutions:
»
Large-scale wind
▪ Can not provide base load
power
»
Gas-fired power
▪ Must underpin the effort.
^ Microsoft Clip Art
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
What is CSG?
›
Methane, natural gas, coal seam methane, coal bed methane
›
Naturally occurring within coal
›
Minimal processing
›
Highly regulated industry at state and federal levels
›
Abundant in eastern Australia:
» 83% of 2P gas reserves
» 31% of gas sales; >90% of Queensland sales
» CSIRO estimates eastern Australia CSG resources are enough to power a city
of 1 million people for 5000 years¹
›
Fuels cooking, hot water systems, heating and electricity generation.
¹ http://www.appea.com.au/industry/csg/introduction.html
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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CSG – significant environmental benefits.
›Less greenhouse emissions than
coal
›Small footprint
›Coexists with agricultural uses of
land
ˆ Rehabilitation of well site.
›Low impact
›Land rehabilitated to natural state.
ˆ Camden well.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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AGL’s NSW CSG projects.
›
More than $500m investment in
upstream equity gas interests in
NSW
›
Assets close to market and
infrastructure
›
Camden:
»
Commenced 2001
»
60 kilometres southwest of Sydney
»
Produces 6% of NSW’s gas
requirement
> Exploring the most prospective
areas of the Sydney and
Gloucester basins - over
17,500km2
> Focus on proving independently
certified reserves to extract value.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
ˆ Rosalind Park gas plant, Camden.
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The Hunter Gas Project.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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The Hunter Gas Project.
› Exploration to date:
» 16 core holes (plugged and abandoned, P&A)
» 6 stratigraphic holes (capped and suspended)
» 2 test wells (capped and suspended
» 307 kms of seismic data
› Bulga gas prospect reserves estimates
(as at 30 September 2010)
» 142 PJ (2P)
» 271 PJ (3P)
› Bulga, Loder and Belford prospects 2P reserves target: 450-500 PJ
› Groundwater Monitoring Program established with independent oversight.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
Future exploration.
›
Not currently exploring, just preparing for activities to be proposed
›
Part 3A approval lodged for 33 wells
›
Exploration activity to continue for at least another 3 to 5 years
›
In 2011, AGL proposes to conduct:
» a 2D seismic exploration survey
» core and stratigraphic hole drilling
›
An environmental assessment for pilot well testing in 2012 or 2013.
Each of these exploration activities requires approval under the
Environmental Planning and Assessment Act 1979.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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The future of CSG in NSW.
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AGL’s response and recommendations.
›
CSG is not mining
›
CSG is an opportunity for NSW to:
» Achieve long term gas security
» Meet the growing energy needs
» Transition to a lower carbon economy
›
Legislation changes to:
» Demonstrates the coexistence of CSG
» Regulate water management legislation
» Provide state-wide consistency
» Standardise community consultation.
ˆ Spring Mountain Wine
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
Fracture stimulation.
› Creates and widens
fractures to enhance the
production of gas and
water from coal
› Uses a slurry of water and
sand pumped at high
pressure into the target
coal seam
› No fluids contain any BTEX
or toxic additives.
ˆAGL fracture stimulation operation in Gloucester
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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AGL’s CSG operations and water.
›Approach is proactive and
precautionary
›Manage operations to:
» Protect beneficial uses of shallow
aquifers
» Minimise our footprint
» Integrate with primary land use
›AGL is dedicated to the protection
of groundwater
»
Heavy investment into independent
research and analysis of
groundwater
»
Ground water monitoring program
showed no effect shown during
exploration activities in Broke
›Expansion of research and
monitoring programs.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
ˆ Exploration drilling operations adjacent to irrigated lucerne paddock at
AGL’s Windermere property, Hunter Valley.
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Newcastle Gas Storage Facility
›
AGL is proposing to develop an LNG gas
storage facility in Tomago
›
This facility will provide additional gas supplies
during periods of peak demand
›
The project will provide emergency backup
supply of natural gas to the community,
industry and commercial businesses during
periods of gas supply interruption
›
The Environmental Assessment for this project
will be on public exhibition from June 24 - July
29, 2011.
›
Project dimensions:
- LNG storage capacity of about 30,000 tonnes
- Instantaneous supply up to 120 TJ/day
- Proposed to be operational by end of 2014
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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