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

Transcription

1 Vision: To become the World Leader in CSG Education and Research Coal Seam Gas: Context, Issues and (some) Solutions Prof Chris Moran Director Sustainable Minerals Institute Interim Director Centre for Coal Seam Gas The University Of Queensland 1

2 World GDP 2

3 Demand for Minerals Developing world s share of economy is expected to double Aluminium Copper Iron Ore / Coking Coal Nickel 3

4 Energy Use China India Australia USA Energy Production (Kt oil equiv) Energy Use (Kt oil equiv) Energy Use (Kt oil equiv PER CAPITA) Energy Imports (%)

5 Energy source forecasts abound and fossil fuels dominate in most 5

6 The CO 2 imperative 6

7 Coal Basins of Australia 7

8 Coal Seam Gas Production in Queensland Shallow coal-bearing regions in Queensland Bowen and Surat Basin CSG Wells & Leases Legend Shallow coal locations Surat basin Bowen basin Clarence-Moreton Basin Galilee Basin Moranbah CSG projects Legend Coal seam gas wells Surat basin Bowen basin EPP and PL grants Northern Bowen Basin COLLINSVILLE EMERALD MACKAY MORANBAH Central Bowen Basin EMERALD ROCKHAMPTON GLADSTONE Fairview CSG projects TAROOM Moura CSG projects MOURA BUNDABERG TAROOM GYMPIE ROMA CHINCHILLA Spring Gully CSG projects Peat and Scotia CSG projects Jurassic CSG projects WARWICK Kilometers Kilometers A) 8

9 CSG Production in Queensland Domestic gas supply began 2000 Cumulative production = 646 PJ (17,248 Mm 3 ) Annual production = 133 PJ (3558 Mm 3 ) 1500 wells Annual Production 2008 Powder River Basin = 435 bcf San Juan Basin = 1210 bcf Next 5-10 years industry growth to supply 6-8 LNG plants 49,812 Mm 3 pa; 1,759 bcf 20,000-40,000 wells 9

10 Extracting Gas requires Water Removal 1. To release gas from coal, pressure must be reduced. This is achieved by pumping water out of the cleats. 2. As pumping p continues, gases desorb from the coal matrix and flow into the cleats. Original picture sourced from (Glikson & Mastalerz, 2000) Picture sourced from (DME, 2008); original picture courtesy of CH4 Pty Ltd Arrow Energy Limited 10

11 Water Production By 2020, between 63 and 281 GL/yr may be dewatered from the coal seams of the basins LOCATION Bowen and Surat Basin CSG Wells & Leases Moranbah CSG projects Legend Coal seam gas wells Surat basin Bowen basin EPP and PL grants Northern Bowen Basin EMERALD Water extracted from Surat Peat Basin aquifers for stock and domestic use (~74 GL/yr) Fairview CSG projects Spring Gully CSG projects TAROOM Moura CSG projects and Scotia CSG projects Central Bowen Basin Jurassic CSG projects ML/yr Kilometers A) 11

12 Landscape conceptual model (Landscape in section) Possible aquitard Modern surface head Alluvial Aquiferclay Aquifer above Coal Aquifer below Head The pressure pushing water Capillarity The surface tension in pores holding the water. Small pores pull harder on the water Water in the aquifer pores Water in the coal pores 12

13 Hydrological Risk: Potential Cases (1) Case 1 SURAT BOWEN Aquifer overlying coal seam Aquifer Coal Springbok Walloon CM Clematis Bandanna Water moves in response to head change Case 2 Aquifer underlying coal seam Coal Aquifer Walloon CM Hutton Head and capillarity changes from dewatering forces water to move into coal Case 3 Water moves in Condamine response to head Two or more Aquifer 2 Alluvium aquifers Other change and a interacting Strata second aquifer is Aquifer 1 Coal Springbok Walloon CM connected and water moves to/from it 13

14 Hydrological Risk: Potential Cases (2) Case 4 Surface evaporation ponds seep Saline water seeps from surface evaporation ponds Modifier: Folds and faults Modifer: Water Quality Aquifer interchange with water of less useful quality Folds and faults alter aquifer and coal hydraulic connectivity 14

15 Agriculture and Lifestyle Changes 15

16 Multiple Agendas at Play No fossil fuels renewables leap frogging Agricultural land and open cut coal mining Farming lifestyles Assumed rights Noise Traffic Strangers Fragmentation: biodiversity and farming gpractices Water (Gas migration) 16

17 WATER Calming and clarifying the debate Aquifer interactions Hydraulic fracturing Surface water storage and salt leakage Brine management (Re)-injection Ecosystems and surface water releases 17

18 Landscape conceptual model Possible aquitard Modern surface head Alluvial Aquiferclay Aquifer above Coal Aquifer below Head The pressure pushing water Capillarity The surface tension in pores holding the water. Small pores pull harder on the water Water in the aquifer pores Water in the coal pores 18

19 THE UNIVERSITY OF QUEENSLAND S CENTRE FOR COAL SEAM GAS 19

20 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 for New Knowledge Technology Skilled people 20

21 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 21

22 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 Faculty of Social and Behavioural Sciences 22

23 SMI s Existing Capabilities 23

24 Industry Potential Members Main players in Australian CSG/LNG industry Junior CSG companies International companies Service Providers 24

25 Participation Agreement Comittment to the entity in 5 year blocks with exit per negotiated agreements; 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; Full cost project budgeting unless the Board indicates otherwise for reasons that are stated and time bounded Additional Partners are allowed to join up until 1 year after the agreement with the founding partners is signed 25

26 Governance Development Board Strategic t Advisory Board (SAB) Technical Advisory Group (TAG) 26

27 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 Engineering Social Performance and community impact 27

28 Business Areas Four Business Areas are identified for the centre: 1. Education 2. Research 3. Industry and government short term responses 4. Utilization 28

29 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 Geosciences Graduate Certificate in Sustainable Resources Management 3. Significant Increase in RHD Cohort (PhD & Master) 4. Continuing Professional Development 29

30 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 30

31 Opportunities for Involvement Membership Infrastructure t Funding UQ s new Mining and Resource Precinct Contribution to Centre Capability Major Research Equipment eg Hydraulic Fracturing Laboratory Professorial Chairs 31

32 THE UNIVERSITY OF QUEENSLAND S CENTRE FOR COAL SEAM GAS 32

33 DISCUSSION 33