Australia's Influence on CSG and Global Markets
Coal Seam Gas is formed from the decay of organic matter, similar to coal and oil. It is a methane gas that is held within the pores and cleats of coal seams by water pressure. There are many disputes over the production of CSG.
Australia's exploration for CSG has been in progress since 1976, but it was only in 1996 that production began. Currently, Austrila is attempting to meet its commitment to reducing greenhouse emissions, while handling the opposition presented by many communities towards the production of CSG, which has been found to produce at least 50% fewer greenhouse emissions than coal. Though the disputes at home are often reiterated around the world, the current exploration and production taking place in Australia has advanced domestic and global markets.
INVESTMENT OPPORTUNITIES
•Japan has its biggest financial investment in Australia: Ichthys Project, the first Australian-Japanese operated LNG Project.
•Petronet LNG signed an Agreement in 2009 with ExxonMobil's Australian division for a period extending 20 years.
•The Korean company SK Networks Co. has a deal for acquiring 40% of the Australian company Cockatoo Coal Ltd.
•KOGAS, the world's biggest buyer of LNG, plans to participate in the Shell's Prelude gas development in Australia. The South Korean company plans to buy 10% stake in the project, and will establish a wholly owned subsidiary - KOGAS Prelude - in Perth.
•Clough will deploy technical and engineering teams from its fabrication yard in South Korea, while executing Project Management of the Wheatstone Project from its Australian office.
REGULATIONS and TECHNICAL ADVANCEMENTS
•In Queensland, to ensure chemicals believed to be harmful to the environment are not used, BTEX chemicals have been banned and ten days notices is required before beginning hydraulic fracturing. Now, most countries are making the ingredients in their mixture easily accessible to the public, to ensure speculations against the procedure can be diverted.
•In Australia, a check of 2700 wells found that 98% had no reportable leaks, and all the leaks discovered were of limited risk to the workers and community. Nonetheless, to ensure that leaks are fixed immediately an established standard for testing and reporting gas leaks has been established to ensure safety expectations of the community are exceeded: a leak that is 10% of the concentration needed to sustain a flame requires immediate action.
•As well, contamination of water is another reason many argue against CSG. In Australia, many of the companies have invested in water plants that clean the potentially contaminated water.
•Queensland is home to the first CSG-LNG project.
JOB CREATION
The growth of CSG exploration and production is generating an increase in the number of jobs.
Australia anticipates an additional 2000 jobs in the construction industry, totaling 7000 at the end of 2012. Such an increase in demand for a specific sector will present opportunities for workers outside of Australia when it becomes difficult to find workers to fill the demand.
Queensland, in CSG-LNG alone, expects to generate 18,000 direct and indirect jobs. A combination of both indicates that workers will be sought outside of the country for specific expertise.
Often, those involved in Australian CSG production complain about the lack of trained personnel that can assemble permits and plans for structures associated with CSG production: wells, pipelines, evaporation ponds, LNG plants, etc. Therefore, manpower from countries that have been involved in CSG production could potentially be utilized in Australia.
Australia's exploration for CSG has been in progress since 1976, but it was only in 1996 that production began. Currently, Austrila is attempting to meet its commitment to reducing greenhouse emissions, while handling the opposition presented by many communities towards the production of CSG, which has been found to produce at least 50% fewer greenhouse emissions than coal. Though the disputes at home are often reiterated around the world, the current exploration and production taking place in Australia has advanced domestic and global markets.
INVESTMENT OPPORTUNITIES
•Japan has its biggest financial investment in Australia: Ichthys Project, the first Australian-Japanese operated LNG Project.
•Petronet LNG signed an Agreement in 2009 with ExxonMobil's Australian division for a period extending 20 years.
•The Korean company SK Networks Co. has a deal for acquiring 40% of the Australian company Cockatoo Coal Ltd.
•KOGAS, the world's biggest buyer of LNG, plans to participate in the Shell's Prelude gas development in Australia. The South Korean company plans to buy 10% stake in the project, and will establish a wholly owned subsidiary - KOGAS Prelude - in Perth.
•Clough will deploy technical and engineering teams from its fabrication yard in South Korea, while executing Project Management of the Wheatstone Project from its Australian office.
REGULATIONS and TECHNICAL ADVANCEMENTS
•In Queensland, to ensure chemicals believed to be harmful to the environment are not used, BTEX chemicals have been banned and ten days notices is required before beginning hydraulic fracturing. Now, most countries are making the ingredients in their mixture easily accessible to the public, to ensure speculations against the procedure can be diverted.
•In Australia, a check of 2700 wells found that 98% had no reportable leaks, and all the leaks discovered were of limited risk to the workers and community. Nonetheless, to ensure that leaks are fixed immediately an established standard for testing and reporting gas leaks has been established to ensure safety expectations of the community are exceeded: a leak that is 10% of the concentration needed to sustain a flame requires immediate action.
•As well, contamination of water is another reason many argue against CSG. In Australia, many of the companies have invested in water plants that clean the potentially contaminated water.
•Queensland is home to the first CSG-LNG project.
JOB CREATION
The growth of CSG exploration and production is generating an increase in the number of jobs.
Australia anticipates an additional 2000 jobs in the construction industry, totaling 7000 at the end of 2012. Such an increase in demand for a specific sector will present opportunities for workers outside of Australia when it becomes difficult to find workers to fill the demand.
Queensland, in CSG-LNG alone, expects to generate 18,000 direct and indirect jobs. A combination of both indicates that workers will be sought outside of the country for specific expertise.
Often, those involved in Australian CSG production complain about the lack of trained personnel that can assemble permits and plans for structures associated with CSG production: wells, pipelines, evaporation ponds, LNG plants, etc. Therefore, manpower from countries that have been involved in CSG production could potentially be utilized in Australia.
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