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Category — Asia

Unconventional Gas Riles and Refigures the World Energy Market: The Pacific and Asia (Part II)

In Part 1 of this series, the trends in U.S. unconventional gas output in were explored. The impacts on gas markets — $3–5/MMBtu — were noted. If unconventional gas puts pressure on LNG and Gazprom, can this supply and supplier turn to Asia as their new market? Maybe, and just for a while. (1)

1.1.1 Australia’s Experience with Coal Seam Gas

CSG accounts for almost 15% of Australia’s growing gas production, and as much as 30% of probable reserves. LNG plants based on CSG are slated to commence production in 2014, with production of 794 Bcf/y (~16.7 mtpa). Australia’s CSG is believed to occur roughly above shale gas basins, raising the possibility of further unconventional production. Figure 1 shows the CSG, conventional gas fields and transmission infrastructure in Australia’s Queensland State.

As was the case in the U.S., Australia’s development of its CSG occurred proximate to gas transmission infrastructure. The current CSG fields in Australia are just east of the Surat Basin gas fields, providing ready access to transmission and population centers.

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Figure 1: Coal Seam Gas Resources and Infrastructure in Queensland, Australia

A peculiarity of unconventional gas, one that is shared with unconventional oil sources (shale oil, tar sands), is a long reserve lifetime. The unconventionals, at least using current technology, resemble mining or industrial operations more than they do traditional oilfield operations. This means moving a lot of material – water, overburden – and repeating the process continuously so as to maintain a constant rate of output. (1) [Read more →]

February 17, 2011   1 Comment