Oil Search On The Hunt For Coal Seam Gas in Papua New Guinea  

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Gas Today reports that Oil Search has begun looking for coal seam gas in PNG to supplement production from natural gas fields - Oil Search is on to find CSG in PNG.

Oil Search has been awarded seven exploration licences to investigate coal seam gas (CSG) potential in the Strickland Basin, Papua New Guinea (PNG). Oil Search has committed to spend approximately $A5.9 million over the next two years on evaluation of existing data as well as the drilling and sampling of three shallow wells.

The agreement between the PNG Government and Oil Search includes an option to extend the licences for an additional two years subject to relinquishments and an additional committed work program. Existing well data suggests the presence of thick coal layers and a large coal basin in the area of the licenses. The rank, gas content and producibility of the coals will be constrained by the proposed drilling program which is anticipated to reach a total depth of less than 900 m.

Oil Search Managing Director Peter Botten said “While substantial coal seams have been penetrated by previous petroleum wells in the Foreland area of PNG and estimated net coal thickness compares favourable to existing CSG projects globally, the potential for CSG in PNG has not been fully investigated. “Any successful discovery of CSG resources in PNG could be integrated with supply from nearby conventional gas fields, thereby reducing the risks for any development,” he said.

There is more at The Age - Oil Search eyes PNG expansion.
THE liquefied natural gas ''train gang'' rolls on after Oil Search said it hoped to add a third gas-processing train to the ExxonMobil-led Papua New Guinea LNG project.

It comes a week after Woodside's Don Voelte said work had begun on two extra LNG trains at its Pluto project off the West Australian coast, with locations for two more trains being considered. ...

Mr Botten said Oil Search had been granted seven exploration licences in PNG. If it proved to be a large gas resource, the joint venture would look to expand on the 6.3 million tonnes a year planned for the first two trains, he said. ''We have a number of our fields committed to PNG LNG, we have a number of our fields that aren't,'' he said. ''If we are successful in proving up our coal seam gas resource base, that resource base will be used to further fuel our gas expansion activities and hopefully those expansion activities will include a further train of LNG.''

Meanwhile, Mr Voelte has offered the use of a drilling rig to help stop the oil spill that began on Friday morning 250 kilometres off the West Australian coast. PTTEP Australasia, the Thai company that contracted the rig at the centre of the leak, has said it will take at least seven weeks to stop the leak. ''We have contacted the Government and have put all of Woodside's resources at their use if they want them,'' Mr Voelte said. ''We've got a rig they can take if they want a rig.''

The Queensland Business Review reports that another new power station fueled by coal seam gas has opened in Queensland - Gas power station officially firing.
Minister for Infrastructure and Planning, Stirling Hinchcliffe, yesterday officially opened the Braemar 2 power station.

The 450MW coal seam gas-fired power station, near Dalby in southern Queensland, will provide 3 percent of the combined electricity requirements of Queensland and New South Wales and produce less than half the emissions of an equivalent-sized coal-fired power station. ...

The facility consists of three 150MW open-cycle, gas-fired generation units and 110km high-pressure pipeline network. It is managed by ERM Power and supplied with coal seam gas from Arrow Energy’s nearby fields.

Arrow is currently supplying gas to the station at an annualised rate of around 5.5 petajoules (PJ). This will ramp up over the next 12 months to 15 PJ. The Tipton West Joint Venture (70 percent Arrow, 30 percent Shell) will contribute 3.5 PJ/a and the Daandine Joint Venture (70 percent Arrow, 30 percent Shell) will supply 11.5 PJ/a under a 12-year gas sales agreement.

The power station will operate initially as a peak and shoulder period generator that will aim to dispatch electricity during periods of higher electricity demand and capture the associated higher electricity prices during that time.


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