The Queensland gas market is deregulating in response to COAG reforms, coincidental with a predicted shortfall in supply of gas in Queensland within the next year or so. Consequently, a number of firms are investigating coal bed methane, as an alternative source of gas.
This report looks at the wide ranging factors which need to be considered when assessing coal bed methane as an alternative gas supply. The report concludes that operationally, coal bed methane is not sufficiently developed to offer proven, reliable supplies. This, combined with imminent plans to build infrastructure linking further supplies of conventional gas in the State's far south west, means the opportunity to establish coal bed methane, in the short term, will be impeded.
The report includes recommendations on the ways in which coal bed methane may have to proceed if it is to become established in the Queensland gas market over the longer term.
In preparing this report, research was conducted with gas producers, transporters, consumers, technical consultants, and government. As well as sourcing existing books, technical journals, public and media announcements, and industry statistics, the author's own industry experience has been utilised.