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Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute
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Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

Mar 31, 2015

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Page 1: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

Coal Seam Gas – A Sustainable Australian Energy Source.Mike Moraza | 15 June 2011 | Hunter Environmental Institute

Page 2: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

2

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

Page 3: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

3

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

Page 4: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

4

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

Page 5: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

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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

Page 6: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

6

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

Page 7: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

7

The Hunter Gas Project.

» CSG – A Sustainable Australian Energy Source.

» 15 June 2011

» HEI Presentation

Page 8: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

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

Page 9: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

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

Page 10: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

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.

Page 11: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

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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

Page 12: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

12

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

Page 13: Coal Seam Gas – A Sustainable Australian Energy Source. Mike Moraza | 15 June 2011 | Hunter Environmental Institute.

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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