Research in Australia Questions Green Credentials of the Coal Seam Gas/Coal Bed Methane Industry

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Coal seam gas/coal bed methane (CSG/CBM) has been extracted and used in Australia for nearly 30 years, predominantly in Southern Queensland, and lately the industry has been expanding into the state of New South Wales. Recently, the process and the industry have come under public scrutiny in Australia.

Historically, CSG/CBM has been considered a more environmentally cleaner fuel in comparison with other fossil fuels, such as coal. However, a recent scientific study conducted by the Southern Cross University has raised serious questions around the green credentials associated with the CSG/CBM industry.

The study found high levels of methane around active gas fields in Southern Queensland.

Southern Cross University stresses the importance of these findings as methane is considered more toxic than the carbon dioxide emissions produced when burning coal.

Southern Cross University is investigating the quantity of methane emissions leaked into the atmosphere when CSG/CBM is extracted, transported and processed. The emissions are known as fugitive emissions and are difficult to monitor or measure because they can be released at any stage of the process, not solely at the processing plant.

Australia's Petroleum Production and Exploration Association released a statement saying the study is highly speculative and incomplete. The association does not believe these findings will fundamentally change the industry.

An issue surrounding the research is a lack of baseline data. This issue could have been avoided if this type of study was done 10-15 years ago. Researchers from Australia's Petroleum Production and Exploration Association and researchers from the Southern Cross University all agree the need for ongoing development and research.

Industrial Info is currently tracking 40 CSG/CBM projects in Australia across oil and gas and power industries. Out of the 40 projects, 32 are located in Queensland and 8 are located in New South Wales. All projects are in varying stages of planning, engineering and construction and have a total investment value that is more than $72.3 billion (AUD$69 billion).

Four of the major CSG/CBM projects are Arrow Liquefied Natural Gas, Queensland Curtis LNG (QCLNG), Australia Pacific Liquefied Natural Gas (APLNG) and Gladstone Liquefied Natural Gas (GLNG). Arrow Energy Pty Limited (Brisbane, Australia) expects to make a final investment decision for their Arrow LNG project by the fourth quarter of 2013. APLNG and GLNG are well underway and are expected to be completed in 2015.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.