Vision: To become the World Leader in CSG Education and Research

Coal Seam Gas:Context, Issues and (some) Solutions, ( )

Prof Chris MoraniDirector 

Sustainable Minerals InstituteInterim Director 

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Centre for Coal Seam GasThe University Of Queensland

World GDP

2

Demand for MineralsDeveloping world’s share of economy is expected to double

lAluminium

Copper

Iron Ore / Coking Coal

Nickel

3

Energy UseChina

India

Australia

USA

Energy Production (Kt oil equiv)2000000

Energy Use (Kt oil equiv)2000000

India USA

Energy Production (Kt oil equiv)1500000

1000000

Energy Use (Kt oil equiv)1500000

1000000

Energy Use (Kt oil equiv PER CAPITA)

500000

1960 1970 1980 1990 2000 2010

500000

1960 1970 1980 1990 2000 2010

Energy Imports (%)

Energy Use (Kt oil equiv PER CAPITA)25

20

15

10

8000

6000

10

1960 1970 1980 1990 2000 2010

0

5

‐5

4000

2000

1960 1970 1980 1990 2000 20101960 1970 1980 1990 2000 2010

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Energy source forecasts abound and …fossil fuels dominate in most

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The CO2 imperative

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Coal Basins of Australia

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Coal Seam Gas Production in Queensland

Shallow coal-bearing regions in QueenslandBowen and Surat Basin CSG Wells & Leases

LegendShallow coal locations

Surat basin

Bowen basin

Clarence-Moreton Basin

Galilee Basin

LegendCoal seam gas wellsSurat basinBowen basinEPP and PL grantsMoranbah

CSG projects

MACKAY

MORANBAH

COLLINSVILLEEMERALD

Northern Bowen Basin

CentralB B i

MOURA

TAROOM

EMERALD

MORANBAH

BUNDABERG

GLADSTONEROCKHAMPTON

TAROOM

MouraCSG projects

Peat and ScotiaCSG projects

FairviewCSG projects

Spring GullyCSG projects

Bowen Basin

Jurassic

ROMAGYMPIE

WARWICK

CHINCHILLA

0 200100 Kilometers

Jurassic CSG projects

0 200100 Kilometers A)

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CSG Production in Queensland

• Domestic gas supply began 2000

• Cumulative production• Cumulative production 2000-2007 = 646 PJ (17,248 Mm3)

• Annual production 2007• Annual production 2007-2008 = 133 PJ (3558 Mm3)1500 ll• 1500 wells

• Next 5-10 years industry

Annual Production 2008

growth to supply 6-8 LNG plants

• 49,812 Mm3 pa; 1,759 bcf• Powder River Basin = 435 bcf• San Juan Basin = 1210 bcf

• 20,000-40,000 wells

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Extracting Gas requires Water Removal

1.    To release gas from coal,from coal, pressure must be reduced.  This is achieved byachieved by pumping water out of the cleats.

2.    As pumping p p gcontinues, gases desorb from the coal matrix and flow into the 

Picture sourced from (DME, 2008); original picture courtesy of CH4 Pty Ltd Arrow Energy Limited

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cleats.   Original picture sourced from (Glikson & Mastalerz, 2000)

Water Production

By 2020, between 63 and 281 GL/ b281 GL/yr may be dewatered from the coal seams of the basins 

Legend

Bowen and Surat Basin CSG Wells & Leases

LOCATION

LegendCoal seam gas wellsSurat basinBowen basinEPP and PL grants

Northern

MoranbahCSG projects

20000

TAROOM

EMERALD

Northern Bowen Basin

MouraCSG projects

FairviewCSG projects

CentralBowen Basin

0

10000

20000

Water extracted from Surat B i if f t k d Peat and Scotia

CSG projectsSpring GullyCSG projects

Jurassic CSG projects

0ML/yr

Basin aquifers for stock and domestic use (~74 GL/yr)

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0 200100 Kilometers A)

Landscape conceptual model(L d i ti )(Landscape in section)

Possible aquitard

Alluvial clay

Modern surface

Aquifer

A if b

Alluvial clayhead

Aquifer

Aquifer above

Aquifer belowCoal

Head          The pressure “pushing” water Water in the aquifer poresWater in the coal pores

Capillarity   The surface tension in pores holding the water.Small pores “pull” harder on the water

Water in the coal pores

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Hydrological Risk: Potential Cases (1)

Case 1 SURAT BOWENW i

Aquiferoverlying coal seam

CoalAquifer

Walloon CM

SpringbokBandannaClematis

Water moves in response to head change

seam

Case 2 Head and capillarity changes from

Aquifer underlying coal seam

CoalAquifer Hutton

Walloon CMchanges from dewatering forces water to move into coal

Case 3

Two or more Aquifer 2CondamineAlluvium

Water moves in response to head Two or more 

aquifers interacting

Other Strata

Aquifer 2 Alluvium pchange and a second aquifer is connected and 

13Coal

Aquifer 1 SpringbokWalloon CM

water moves to/from it

Hydrological Risk: Potential Cases (2)

Case 4Saline water

Surface evaporation ponds seep

Saline water seeps from surface evaporationponds seep evaporation ponds Modifier:  Folds and faults

Aquifer interchangeFolds and faults lt if d

Modifer:  Water Quality

Aquifer interchange with water of less useful quality

alter aquifer and coal hydraulic connectivity

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Agriculture and Lifestyle Changes

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Multiple Agendas at Play

• No fossil fuels – renewables leap frogging• Agricultural land and open cut coal miningAgricultural land and open cut coal mining• Farming lifestyles

– Assumed rights– Noise– Traffic

St– Strangers– Fragmentation: biodiversity and

farming practicesg p• Water

• (Gas migration)

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WATERCalming and clarifying the debate

• Aquifer interactions• Hydraulic fracturing• Surface water storage and salt leakage• Brine management• (Re)-injection• Ecosystems and surface water releases

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Landscape conceptual model

Possible aquitard

Alluvial clay

Modern surface

Aquifer

A if b

Alluvial clayhead

Aquifer

Aquifer above

Aquifer belowCoal

Head          The pressure “pushing” water Water in the aquifer poresWater in the coal pores

Capillarity   The surface tension in pores holding the water.Small pores “pull” harder on the water

Water in the coal pores

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THE UNIVERSITY OF QUEENSLAND’S CENTRE FOR COAL SEAM GAS

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Objective

• To become the world leading Centre of Excellence in education and research for the Coal Seam Gas Sector

• To support leading practice policy development

• For Queensland to become the prime source to the world forNew Knowledge• New Knowledge

• Technology• Skilled people

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Centre Outline

• Partnership with Arrow Energy, Santos, and BG-QGC

• Housed within SMI

• Funded by Industry and UQ

• State and Federal Government participation on Advisory Boards

• Four Professorial Chairs

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At UQ CCSG Expertise

• Faculty of Engineering Architecture and Information Technology

• Faculty of Science

• The Sustainable Minerals Institute

• Institute for Social Science Research

• Faculty of Business Economics and Law

F lt f S i l d B h i l S i• Faculty of Social and Behavioural Sciences

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SMI’s Existing Capabilities

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Industry Potential Members

• Main players in Australian CSG/LNG industry

J i CSG i• Junior CSG companies

• International companies• International companies

• Service ProvidersService Providers

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Participation Agreement

• Comittment to the entity in 5 year blocks with exit per negotiatedagreements;g ;

• Each Block is amounted to $500,000 and is worth 1 vote

• Partners can purchase as many blocks as they wish

• Equity based on “fresh” cash only;• Equity based on fresh cash only;

• Full cost project budgeting unless the Board indicates otherwisefor reasons that are stated and time boundedfor reasons that are stated and time bounded

• Additional Partners are allowed to join up until 1 year after theagreement with the founding partners is signedagreement with the founding partners is signed

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Governance

• Development Board

St t i Ad i B d (SAB)• Strategic Advisory Board (SAB)

• Technical Advisory Group (TAG)• Technical Advisory Group (TAG)

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Initial Focus Research Areas

UQ intends to seek world class expertise for professorial Chairs for each of it’s research areas:

• Hydrogeology and treatment of coal seam water

• Geophysics and geochemistry in CSG

• Petroleum EngineeringPetroleum Engineering

S i l P f d it i t• Social Performance and community impact

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Business Areas

Four Business Areas are identified for the centre:

1. Education

2. Research

3. Industry and government short term responses

4 Utilization4. Utilization

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Education

1. Undergraduate ‘Minors’ being explored

2. Post-Graduate Coursework– Masters of Science and Petroleum Engineering

• Dual-badged degree with Herriot-Watt• Led by Professor of Petroleum Engineering

– Masters of Coal Seam GeosciencesMasters of Coal Seam Geosciences– Graduate Certificate in Sustainable Resources Management

3. Significant Increase in RHD Cohort (PhD & Master)

4. Continuing Professional Development

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Research

• Research will be delivered by:

– Postgraduate Research

– Pre-competitive multi-party research (Core Centre Projects and None Core Centre Projects)

– One on One projects

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Opportunities for Involvement

• MembershipMembership

I f t t F di• Infrastructure Funding– UQ’s new Mining and Resource Precinct

• Contribution to Centre Capability– Major Research Equipment

eg Hydraulic Fracturing LaboratoryP f i l Ch i– Professorial Chairs

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THE UNIVERSITY OF QUEENSLAND’S QCENTRE FOR COAL SEAM GAS

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DISCUSSION

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