Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute
Mar 31, 2015
Coal Seam Gas – A Sustainable Australian Energy Source.Mike Moraza | 15 June 2011 | Hunter Environmental Institute
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NSW is heavily reliant on imported gas.
Rosalind Park gas plant, Camden.
› 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.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
ˆEast Coast Gas Network
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The Hunter energy industry.
^ Microsoft Clip Art
› 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.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
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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.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
¹ http://www.appea.com.au/industry/csg/introduction.html
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CSG – significant environmental benefits.
› Less greenhouse emissions than coal
› Small footprint
› Coexists with agricultural uses of land
› Low impact
› Land rehabilitated to natural state.
ˆ Rehabilitation of well site.
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.
ˆ Rosalind Park gas plant, Camden.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
7
The Hunter Gas Project.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
8
› 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.
The Hunter Gas Project.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
9
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
10The future of CSG in NSW.
› 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.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
ˆ Spring Mountain Wine
AGL’s response and recommendations.
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› 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.
Fracture stimulation.
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.
ˆ Exploration drilling operations adjacent to irrigated lucerne paddock at AGL’s Windermere property, Hunter Valley.
» CSG – A Sustainable Australian Energy Source.
» 15 June 2011
» HEI Presentation
13
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