Coal Seam Gas: Australia's Regional Deposits Explored

where in australia is coal seam gas found

Coal seam gas (CSG) is a natural gas that occurs in coal deposits, typically 300-600 metres underground. It is found in most coal seams and is similar to conventional natural gas. In Australia, CSG was first identified in the early 1900s when coal mining began. Commercial production of CSG started in 1996 in the Bowen Basin, Queensland, and has since become integral to the gas industry in eastern Australia. CSG is now found in several basins across Queensland and New South Wales, with exploration planned or underway in other coal basins.

Characteristics Values
Commercial production start year 1996
Commercial production start location Bowen Basin, Queensland
Current significant reserves Bowen Basin, Surat Basin (Queensland)
Other reserves Sydney, Gunnedah, Clarence-Moreton, and Gloucester basins (New South Wales); Galilee, Arckaringa, Perth, and Pedirka basins (under exploration)
Exploration targets Galilee, Arckaringa, Perth, and Pedirka basins
Coal seam gas formation depth Typically 300-600 metres underground
Extraction method Drilling wells through coal seams, hydraulic fracturing ("fracking")
Environmental impact Groundwater extraction may affect water quality and quantity in adjacent aquifers used for town water supply, irrigation, springs, and ecosystems
Regulatory protection Regional Planning Interests Regulation 2014, Environmental Protection Act 1994

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Queensland's CSG reserves

Queensland has large reserves of coal seam gas (CSG) and relatively small conventional gas reserves. CSG is a naturally occurring methane gas found in most coal seams, and it was first identified in Australia when coal mining began in the early 1900s. Commercial production of CSG in Queensland began in 1996 in the Bowen Basin, and since then, production has increased rapidly. CSG has become an integral part of the gas industry in eastern Australia, particularly in Queensland. Queensland's CSG reserves are primarily located in the Bowen and Surat basins, with exploration also occurring in the Galilee Basin.

The process of extracting CSG involves drilling wells through coal seams and reducing water pressure by extracting water. This releases the natural gas from the coal, which is then separated from the water and piped to compression plants for transportation. In some cases, hydraulic fracturing or "fracking" is used to extract CSG. This involves injecting fluid under high pressure to create additional pathways for the gas to flow.

The demand for natural gas in Queensland is met primarily through CSG production. The three LNG plants on Curtis Island, near Gladstone, are the world's first LNG producers to use CSG rather than conventional gas sources. However, these plants are facing challenges in fulfilling their capacity due to emerging shortages of CSG reserves. According to EnergyQuest, the supply concerns are attributed to ambitious estimates of CSG reserves, resulting in a gap between reserve estimates and actual delivery.

Queensland's diverse landscapes can impact coal seam gas projects, and each project must be assessed for its potential environmental impacts. Groundwater extraction, for instance, can affect the quality and quantity of water in adjacent aquifers used for town water supply, irrigation, or by ecosystems. As a result, the Queensland government has implemented policies to manage and monitor the extraction process, ensuring the sustainable use of CSG reserves while minimizing potential negative consequences.

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Coal seam gas in New South Wales

Coal Seam Gas (CSG) is a naturally occurring methane gas found in most coal seams. It was first identified in Australia when coal mining began in the early 1900s. The commercial production of CSG in Australia started much more recently, in 1996, in the Bowen Basin in Queensland. Since then, CSG has become an integral part of the gas industry in eastern Australia, particularly in Queensland.

In New South Wales, reserves have been proven in the Sydney, Gunnedah, Clarence-Moreton, and Gloucester basins. Exploration has been undertaken or is planned to be undertaken in other coal basins including the Galilee, Arckaringa, Perth, and Pedirka basins.

The extraction of CSG involves drilling wells through coal seams and reducing water pressure by extracting water. This releases natural gas from the coal. The gas and water are then separated, and the gas is piped to compression plants for transportation via gas transmission pipelines. In some cases, hydraulic fracturing, or "fracking," is used to extract CSG. This process involves injecting fluid under high pressure into a coal seam to widen existing fractures and create new ones.

The NSW Government has introduced CSG exclusion zones to restrict new coal seam gas activity in residential areas. These exclusion zones, implemented in October 2013, apply to all 152 local government areas in NSW and the North West and South West Growth Centers of Sydney. The government has also banned the use of certain chemicals and evaporation ponds in coal seam gas drilling and hydraulic fracturing activities.

The NSW Gas Plan sets out the regulations for all CSG activities in the state, including mining and CSG activity oversight, codes of practice for exploration, and fracture stimulation and well integrity standards. In 2013, the NSW Chief Scientist and Engineer, Professor Mary O'Kane, was directed to conduct a comprehensive review of CSG-related activities, focusing on human health and environmental impacts. The final report, published in September 2014, included 16 recommendations to the government, addressing various aspects such as careful designation of areas for CSG extraction, high standards of engineering, comprehensive monitoring of operations, and the application of new technologies.

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Coal measures in South Australia

Coal seam gas (CSG) is a naturally occurring methane gas found in most coal seams. It is similar to conventional natural gas but can store up to seven times as much gas as a conventional natural gas reservoir of equal rock volume. This is due to coal's large internal surface area.

In South Australia, coal seam gas is found in the form of lower-quality lignite (brown coal), which is caused by a high water content. The process of extracting coal seam gas involves drilling wells through coal seams and reducing water pressure by extracting water. This process releases the natural gas from the coal, which is then separated from the water and piped to compression plants for transportation.

The commercial production of coal seam gas in Australia began in 1996 in the Bowen Basin, Queensland. Since then, significant reserves of coal seam gas have been discovered in Queensland and New South Wales, with exploration also planned for other coal basins. While Australia has extensive coal resources and is a significant global exporter, the environmental impacts of coal mining and combustion are increasingly being scrutinized.

In South Australia, the impact of coal seam gas projects on groundwater extraction and environmental conservation is a key consideration. The diverse landscapes in Australia mean that the potential impacts of coal seam gas projects can vary significantly from region to region, underscoring the importance of thorough assessments for each project.

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Coal mining impacts

Coal seam gas (CSG) is a natural gas found in coal deposits, typically 300-600 metres underground. Coal seam gas is a major industry in eastern Australia, particularly in Queensland, where it has been commercially produced since 1996. CSG is also found in New South Wales, with reserves in the Sydney, Gunnedah, Clarence-Moreton, and Gloucester basins.

The impacts of coal mining on the environment and local communities are varied and often detrimental. The extraction process can affect the quality and reduce the quantity of groundwater in adjacent aquifers, which may be used for town water supply, irrigation, or by natural ecosystems. This can lead to increased flooding and waterlogging, further degrading soil quality and reducing agricultural productivity. CSG mining also contributes to air pollution and greenhouse gas emissions, including the release of methane during extraction and the burning of gas for energy.

In Australia, the regulation of CSG mining falls primarily to state governments, with the federal government also playing a role through the Environment Protection and Biodiversity Conservation (EPBC) Act. The EPBC Act indirectly regulates CSG development on or near agricultural land if it is likely to have a significant impact on a matter of national environmental significance. The Gasfields Commission in Queensland is crucial in managing the coexistence of the CSG industry and agriculture, advising the government, conducting research, and facilitating communication between landholders, communities, and the industry.

Despite regulatory measures, concerns remain about the adequacy of current laws and standards. There is a rising need to update national legislation due to the cumulative impacts on communities, agricultural industries, air and water quality, and the environment. For example, CSG projects typically have conditions limiting groundwater extraction, but companies are required to investigate and take action only when impacts reach a certain threshold.

To mitigate environmental risks, Australia has adopted an adaptive management approach, monitoring impacts and making changes if necessary. However, the diverse Australian landscapes mean that potential impacts must be assessed at the individual project level, as they can vary significantly.

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CSG and LNG

Coal Seam Gas (CSG) is a naturally occurring methane gas found in most coal seams. It is similar to conventional natural gas. CSG is found and produced from the cleats and fractures of coal seams. In Australia, the commercial production of CSG began in 1996 in the Bowen Basin, Queensland. Since then, production has increased rapidly, particularly during the first decade of the 21st century. CSG has now become an integral part of the gas industry in eastern Australia, especially in Queensland.

CSG is held in place by water pressure. To extract it, wells are drilled through the coal seams and the water pressure is reduced by extracting some of the water. This releases natural gas from the coal. The gas and water are then separated, and the gas is piped to compression plants for transportation via gas transmission pipelines. In some cases, hydraulic fracturing, or 'fracking', is used to extract CSG. Hydraulic fracturing involves injecting fluid under high pressure into a coal seam to widen existing fractures and create new ones. This process is controlled and closely monitored and has been used for over 40 years in Australia.

Liquefied Natural Gas (LNG) is gas that has been cooled to the point of becoming a liquid, allowing for safe storage and transportation. LNG is produced from Queensland's gas resources. The process of extracting gas and converting it to LNG can be broken down into three industry classifications: upstream, midstream, and downstream. Upstream includes surveying, drilling, extracting, processing, and compressing gas. Midstream involves transporting gas from the gas fields to the LNG plant via gas pipelines. Downstream refers to converting the gas into a liquid for shipment and export.

Frequently asked questions

Coal seam gas is found in all states and the Northern Territory of Australia. Coal measures in South Australia are primarily of Permian, Triassic, Jurassic, and Tertiary age. Coal seam gas has been found in the Patchawarra Formation in the Cooper Basin, the Pedirka Basin, and the Arckaringa Basin. In Queensland, coal seam gas is found in the Bowen and Surat basins. In New South Wales, coal seam gas is found in the Sydney, Gunnedah, Clarence-Moreton, and Gloucester basins. Exploration is also being undertaken in the Galilee, Perth, and Pedirka basins.

Coal seam gas (CSG) is a naturally occurring methane gas found in coal seams. It is similar to conventional natural gas but can store up to seven times as much gas due to the large internal surface area of coal.

Coal seam gas is extracted by drilling wells through coal seams and reducing the water pressure by extracting water. This releases the gas from the coal, which can then be separated and transported via pipelines. In some cases, hydraulic fracturing or "fracking" is used to create additional pathways for the gas to flow.

Coal seam gas is a cleaner energy source than coal, producing around half the emissions when used to generate electricity. It also helps lower carbon emissions as we transition to a low-carbon future. CSG has become an integral part of the gas industry in eastern Australia, particularly in Queensland, and is expected to provide the basis for the developing LNG industry in the state.

Australia's diverse landscapes mean that the potential impacts of coal seam gas projects can vary. Groundwater extraction during the drilling process can affect the quality and reduce the quantity of groundwater in adjacent aquifers used for town water supply, irrigation, or by springs and other ecosystems. Other potential environmental impacts include stream diversions and land subsidence. Therefore, it is essential to assess the potential impacts of each coal seam gas project at the project level to mitigate these risks.

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