INDUSTRY INFORMATION

Australia's annual output of coalbed methane in 2016 reached 31 billion cubic meters, surpassing the US's 29 billion cubic meters, making it the world's largest producer of coalbed methane. Queensland is Australia's leading producer of coalbed methane. 99.6 percent of Australia's CBM production comes from Queensland.

Queensland coalbed methane is mainly produced in the Bowen Basin and the Surat Basin. Annual production of CBM in Queensland increased from 1 billion cubic meters in the fiscal year 2005-2006 (end of June 2005 to the end of June 2006) to 26 billion cubic meters in the fiscal year 2015-2016 (end of June 2015 to the end of June 2016) Rice, in which the coalbed methane production in the Surat Basin has grown rapidly. In 2011, Surat coalbed methane production exceeded the Bowen Basin and became the largest basin for CBM production in Australia. In the fiscal year 2015-2016, the Surat Basin has an annual gas production of 21 billion cubic meters, accounting for 80% of the annual production of coalbed methane in Queensland. The annual production capacity of the Bowen Basin in fiscal year 2015-2016 is 5 billion cubic meters, accounting for 20% of the annual production of coalbed methane in Queensland (see Figure 1). As of the end of June 2016, Queensland's cumulative production of coalbed methane reached 86.8 billion cubic meters, of which the Surat Basin contributed 60 percent.

The reserves of coalbed methane have increased significantly since 2005. The reserves of 2P residual reserves of coalbed methane in Bowen and Surat Basin in Queensland have increased from only 90 billion cubic meters in 2005 to 750 billion cubic meters in 2010. At the end of June, the remaining CSP reserves of coalbed methane increased to 1.11 billion cubic meters, of which the remaining 2P reserves of Surat Basin reached 830 billion cubic meters, accounting for 75 percent of the total 2P remaining reserves.

The biggest difference between CBM development and conventional gas field development is that coalbed methane field development requires pre-production water and pressure reduction, and CBM development is accompanied by a large amount of formation water production. Water production is related to coal seam gas saturation, coal seam cleat permeability, porosity, coal seam and nature and external water intrusion. The total coal seam thickness in the Surat Basin is large, the coal seam permeability is high, and the water production is much higher than that in the Bowen Basin. From 2005 to 2016, the annual water production in Bowen Basin increased from 1.2 million tons to 5.6 million tons, while the Surat Basin increased from 3 million tons to 49 million tons, accounting for 90% of Queensland's CBM production.

The coal seams in the Bowen Basin have good connectivity, and the single well control area is large. The development well spacing is usually around 1500 meters. The coal seams in the Surat Basin are thin and the coal seams are poorly connected. The development well spacing is usually around 750 meters. With the development of two main basins, the number of production wells has increased significantly year by year. The number of production wells in the Bowen Basin has increased from 248 in 2005 to 1,045 in 2016. The number of production wells in the Surat Basin has increased significantly from 31 in 2005. By 4082 in 2016, by June 2016, there were 5,127 CBM production wells in the two main basins.

Australia's CBM reserves and production have grown substantially since 2005, far exceeding domestic demand. Australian power plants have cheap coal supplies, so gas prices are lower relative to the international market, and liquefied gas prices are linked to crude oil prices. In order to maximize profits, Australian CBM companies seek to liquefy CBM outlets. Some large international companies have also begun to enter the Australian market. Among them, Sinopec and ConocoPhillips invested in the Oerlikon CBM development project, and the three companies jointly developed the Australian Pacific LPG project (APLNG). Sinopec accounted for 25% of the shares, ConocoPhillips accounted for 37.5% of the shares, and Origen accounted for 37.5%. Origen is the upstream CBM development operator. ConocoPhillips is the downstream CBM liquefaction operator. It is responsible for the construction and operation of two liquefied gas production lines with an annual production capacity of 4.5 million tons and two reservoirs for storing 160,000 cubic meters of liquefied gas. tank. British Gas acquired Queensland Gas Company and jointly developed the Queensland Curtis LPG Project (QCLNG) with CNOOC and Tokyo Gas Company, of which CNOOC accounted for 25%, British Gas Company accounted for 74%, and Tokyo Gas accounted for 1%. % share. Dutch Shell acquired British Gas in 2016 and the Queensland Curtis LPG project was included in Shell. The Queensland Curtis LPG project includes the construction of two LPG production lines with an annual capacity of 4.25 million tons. Malaysia's State Oil Company (Petronas), France's Total, Korea Gas Company (KOGAS) and Australia's Santos cooperated to develop the Gladstone Liquefied Gas Project (GLNG). Santos is the operator, accounting for 30% of the shares, Malaysian state-owned oil company accounted for 27.5%, France's Total accounted for 27.5%, and South Korea's natural gas company accounted for 15%. The project includes the construction of two liquefied gas production lines with an annual production capacity of 3.9 million tons and a 420-kilometer gas pipeline. Wrigley is a coal-bed methane company jointly established by PetroChina and Shell, each of which has a 50% share. Wrigley currently abandons the LPG project, mainly supplying gas for domestic and other LPG projects.

Origen's APLNG project, which is the upstream CBM development operator, is Australia's largest CBM development project, with an annual production of 13.5 billion cubic meters of CBM from 2015 to 2016. The first LPG production line of the APLNG project was put into production in December 2015, and the second LPG production line was put into production in October 2016. Queensland Gas Development's Queensland Curtis LPG project has an annual production of 8 billion cubic meters of CBM from 2015 to 2016. Its first LPG production line was put into production in December 2014 and the second liquefaction in July 2015. The gas production line is put into production. The Gladstone liquefied gas project developed by Santos as an operator has an annual production of 3.2 billion cubic meters of CBM from 2015 to 2016. The first liquefied gas production line was put into production in September 2015, and the second in May 2016. The liquefied gas production line is put into production. Wrigley's annual production of coalbed methane in the fiscal year 2015 to 2016 reached 1.2 billion cubic meters.

The Australian Gas Light Company (AGL) and Senex are also investing in CBM exploration and development, but at a much smaller scale.

Popular Lunlinboke 21/03/2018