CSG, also called coal bed methane, is mostly composed of methane and is typically attached to the coal along its natural fractures and cleats underground. This gas is released when pressure on the coal seam is reduced, usually by removing water from the seam. In order to access the gas, wells are drilled into the coal seams, bringing the water from the seams to the surface. This process reduces pressure and allows the gas to be released.
CSG has been safely used to power Queensland homes for over 15 years. Today it is our major domestic gas fuel source, providing over 90 per cent of domestic gas supply.
The rapid expansion of the Queensland CSG industry has been driven by the development of the CSG to LNG industry.
LNG is coal seam gas that has been cooled to the point it becomes a liquid and is able to be safely stored and transported.
The process of extracting gas and converting CSG to LNG is commonly broken into three industry classifications: