Australian Energy Resource

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Australian Energy Resource Chapter 4 Gas 4.1 Summary KEY MESSAGES • Australia has significant gas resources; gas is Australia’s third largest energy resource after coal and uranium. • Most of the conventional gas resources are located off the north-west coast of Australia and are being progressively developed for LNG export and domestic use. • Significant coal seam gas resources exist in the major coal basins of eastern Australia and are being developed for domestic use and potential export. • Australia’s gas resources are large enough to support projected domestic and export market growth beyond 2030 and are to expected grow further. • Gas is a relatively flexible and clean energy source and is projected to be the fastest growing fossil fuel over the period to 2030. • Gas is expected to significantly increase its share of Australia’s energy production and exports, and make a substantially greater contribution to electricity generation. 4.1.1 World gas resources and market • This expansion in global demand will increasingly 83 • Gas is the third largest global energy source, be met by imports, including LNG from countries currently accounting for around 21 per cent of such as Australia. Global LNG trade is projected global primary energy consumption. Global gas by the IEA to rise by 3.7 per cent per year to reach consumption has increased by 2.8 per cent per 17 104 PJ (314 Mt, 15 tcf) in 2030. year since 2000, to reach 121 280 PJ (107 tcf) • The recent rapid growth in unconventional gas in 2008. resources and production worldwide could reduce • Global LNG trade has expanded even more LNG export opportunities in some markets but is rapidly – by 6.1 per cent per year since 2000 – likely to have less impact on Asian markets. to reach 8850 PJ (168 Mt, 8 tcf) in 2008. LNG trade accounts for around 7 per cent of global 4.1.2 Australia’s gas resources gas consumption. • Gas is Australia’s third largest energy resource after coal and uranium. This is unlikely to change • Global gas proved reserves are estimated to in the period leading up to 2030. have been around 7.2 million PJ (6534 tcf) at the end of 2008. This is equal to more than 60 • Most (around 92 per cent) of Australia’s years’ supply at current production rates. While conventional gas resources are located in the information is limited, global unconventional gas Carnarvon, Browse and Bonaparte basins off resources in place are estimated to be more the north-west coast. There are also resources than four times this amount, in the order of in south-west, south-east and central Australia. 35.8 million PJ (32 500 tcf). Large coal seam gas (CSG) resources exist in the • Australia accounted for nearly 2 per cent of world coal basins of Queensland and New South Wales. gas reserves and production in 2008. However, Tight gas accumulations are located in onshore Australia is the world’s sixth largest LNG exporter Western Australia and South Australia, while and accounted for 9 per cent of world LNG trade potential shale gas resources are located in the in 2008. Northern Territory (figure 4.1). • Global gas demand is projected by the • In 2008, Australia’s economic demonstrated International Energy Agency (IEA) in its reference resources (EDR) and subeconomic demonstrated case to increase by 1.5 per cent per year to reach resources (SDR) of conventional gas were 149 092 PJ (132 tcf) in 2030. estimated at 180 400 PJ (164 tcf). At current AUSTRALIAN ENERGY RESOURCE ASSESSMENT production rates there are sufficient EDR 168 600 PJ (153 tcf), including sub-economic (122 100 PJ, 111 tcf) of conventional gas to resources (SDR) estimated at 30 000 PJ last another 63 years (figure 4.2). (27.3 tcf) and inferred of 122 020 PJ (111 tcf). • In addition there is a possible 22 000 PJ (20 tcf) • Tight gas resources are estimated at around of inferred conventional gas resources in recently 22 000 PJ (20 tcf). Australia may also have discovered fields and other fields not booked as significant but as yet unquantified shale gas part of EDR and SDR. resources. No reserves of tight gas or shale gas are currently booked. • Gas exploration has a sustained record of success, with the strong likelihood of finding more 120 conventional gas resources. Field growth and new discoveries will help offset increasing production 100 EDR so that identified conventional gas resources Production 80 in 2030 will remain substantial and capable of supporting several decades of future production. fTc 60 63 years remaining at current production • Australia also has significant unconventional gas levels resources – CSG, tight gas and shale gas. Coal 40 seam gas economic demonstrated resources 20 (EDR) at the end of 2008 were 16 590 PJ (15.1 tcf), smaller recoverable resources than 0 several of Australia’s individual conventional 1982 1985 1988 1991 1994 1997 2000 2003 2006 2008 Year gas fields but equal to more than 100 years of AERA 4.2 CSG production at current rates. Total identified Figure 4.2 Conventional gas resources and production resources of CSG are estimated to be around Source: Geoscience Australia 2009 110° 120° 130° 140° 150° BONAPARTE BASIN Conventional Gas Produced: 647 Conventional Gas Remaining: 26 119 84 BROWSE BASIN Conventional Gas Produced: 0 0 750 km Conventional Gas Remaining: 36 945 DARWIN 10° CARNARVON BASIN Conventional Gas Produced: 14 388 Conventional Gas Remaining: 103 846 BOWEN BASIN CANNING BASIN Conventional Gas Produced: 647 Conventional Gas Remaining: 441 Conventional Gas Produced: 0 CSG Produced: 93 Conventional Gas Remaining: 7 CSG Remaining: 5524 20° AMADEUS BASIN ADAVALE BASIN Conventional Gas Produced: 9 SURAT BASIN Conventional Gas Produced: 410 Conventional Gas Remaining: 0 Conventional Gas Produced: 287 Conventional Gas Remaining: 339 Conventional Gas Remaining: 36 CSG Produced: 40 COOPER/EROMANGA/ CSG Remaining: 9778 WARBURTON BASINS BRISBANE Conventional Gas Produced: 6549 CLARENCE- Conventional Gas Remaining: 911 MORETON BASIN CSG Produced: 0 GUNNEDAH BASIN CSG Remaining: 298 PERTH BASIN PERTH Conventional Gas Produced: 2 GLOUCESTER BASIN Conventional Gas Remaining: 12 Conventional Gas Produced: 709 CSG Produced: 0 30° CSG Produced: 0 Conventional Gas Remaining: 889 CSG Remaining: 176 CSG Remaining: 336 ADELAIDE SYDNEY SYDNEY BASIN CSG Produced: 5 OTWAY BASIN MELBOURNE CSG Remaining: 67 Gas resources (in PJ) Conventional Gas Produced: 484 Conventional Gas Remaining: 1889 GIPPSLAND BASIN Gas pipeline Conventional Gas Produced: 8216 Past production Conventional Gas Remaining: 8641 Gas pipeline Conventional gas BASS BASIN (proposed) Conventional Gas Produced: 47 HOBART 40° resources Conventional Gas Remaining: 528 Gas processing Coal seam gas plant resources Gas basin AERA 4.1 Figure 4.1 Location of Australia’s gas resources and infrastructure Source: Geoscience Australia AUSTRALIAN ENERGY RESOURCE ASSESSMENT CHAPTER 4: GAS • Total identified gas resources are sufficient accounted for 22 per cent (1249 PJ) of Australia’s to enable significant expansion in Australia’s primary energy consumption in 2007–08, and 16 domestic and export production capacity. per cent of electricity generation. Australia’s combined identified gas resources • The main gas users in Australia are the are in the order of 393 000 PJ (357 tcf). This manufacturing, electricity generation, mining and is equal to around 180 years of gas at current residential sectors. production rates, of which EDR accounts for 67 years. • The expansion in gas production over this period has been even stronger. Gas production was • The distribution of gas resources in 2030 1833 PJ (1.6 tcf) in 2007–08. Unconventional is expected to follow a similar pattern with gas production, in the form of coal seam gas, substantial conventional gas resources offshore accounted for 7 per cent of this production. and unconventional resources identified across No tight or shale gas is currently produced several onshore basins. in Australia. 4.1.3 Key factors in utilising • Around 44 per cent (802 PJ, 14.3 Mt) of Australia’s gas resources Australian gas production was exported as LNG, • Most of Australia’s conventional gas resources valued at $5.9 billion, in 2007–08. Higher export are located offshore far from domestic gas volumes and international oil prices increased the markets, which affects the costs of bringing value of exports in 2008–09 to $10.1 billion. the resource to market. 4.1.5 Outlook to 2030 for the • Development of secure long-term markets is necessary to underpin the major capital Australian gas market investment required for development of the • Growth in gas consumption is expected to be offshore gas resources of north-west Australia. driven by investment in new gas-fired power generation and by policy initiatives supporting • Potential environmental issues raised by gas gas uptake as a relatively clean energy source. development may include the disposal of water produced from onshore coal seam gas operations • An emissions reduction target is expected to and carbon dioxide contained in some large enhance the role of gas as a transitional fuel to a low carbon economy. Gas-fired electricity offshore gas fields. 85 generation has lower carbon emissions than • New gas pipelines will be required, particularly in coal-fired electricity without carbon capture and eastern Australia, to provide sufficient supply for storage, and can also be linked with intermittent new gas-fired electricity generation in response to renewable energy resources such as wind to demand for cleaner energy. provide a flexible and reliable power source. 4.1.4 Australia’s gas market
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