CBM Will Continue to Play a Role in Australian East Coast Market

Coalbed methane will continue to play an important role in maintaining gas into the Australian east coast market in the short term, Tor McCaul, managing director of unconventional gas explorer Comet Ridge said November 7 during China-Australia Unconventional Natural Gas Forum held in Beijing.

According to McCaul, the gas supply would be maintained as there is a movement into lower quality coalbed methane around the edges of current basin sweet-spots (Surat Basin) and CBM is coming from new basins as well (Galilee Basin). He stated that shale gas may come into the picture in the medium to longer term.  

He said that research effort for unconventional gas at an academic level should also continue to support tighter sandstone gas production as well as coalbed methane. One of the key economic drivers for success in both tighter gas and coalbed methane would continue to be the quality of the connection between the wellbore and the reservoir.

Queensland saw some focus on tighter onshore sandstone reservoirs in 1980s and 1990s however this was somewhat taken over by focus on CBM reservoirs from late 1990s, he said adding that tight gas opportunities are huge in eastern Australia.

In last few years, eastern Australia has seen massive gas demand expansion mainly due to Gladstone LNG. 

Shardul Sharma