Shale gas | markets
infancy. Throughout 2012 only 16 vertical wells are planned, almost insignificant compared to the 35,000 wells drilled during 2006 in the US. Graeme Bethune CEO, at Australian energy consultancy Energy Quest described the situation last month after the start-up of the Santos Moomba 191 shale well as: “Early days, but encouraging so far.” The Moomba 191 well benefits from the existing field
ing to Bloomberg (24 November 2011). It could also enable Mexico to become an exporter of gas to the US. Meanwhile, Canada’s shale gas production may be
virtually zero at present but British Columbia’s shale gas field offers considerable potential. Plans are underway for an 850km pipeline to take products to the proposed LNG export facility at Prince Rupert. Along- side this, planned expansion in oil sands production is driving pipeline projects to link Canada to the US. With its large quantities of both natural and uncon-
ventional gas reserves, Australia is expected to overtake Qatar as the world’s leading exporter of LNG by the end of this decade. Australia’s Federal Resources and Energy Minister Martin Ferguson estimates there are around 390 tcf of recoverable shale gas reserves in the geological basins of Cooper, Marlborough, Perth and Camping alone (the geologies in these areas are said to resemble the US Eagle Ford area). In comparison, Geoscience Australia estimates the country’s coal seam gas at around 235 tcf. If these estimates are correct, Australia would be the world’s sixth largest holder of shale gas reserves, behind China, US, Argentina, Mexico and South Africa. The Australian shale gas industry is, however, in its
infrastructure. It is only 350m from an existing pipeline network and 8 km from Moomba’s existing gas processing plant, according to Santos CEO James Baulderstone. Speaking to the Australian Broadcasting Corporation, he said the company’s existing infrastruc- ture position in the region means these significant new resources can be brought on line quickly. The company says shale gas from the well is destined to supply 40,000 households in the Sydney and Adelaide regions through Australia’s east coast pipeline network. Geological surveys have confirmed that Australia
shares similar favourable geological conditions with North America for the exploitation of shale gas reserves. And, just as in the US, shale gas is predicted to be a “game changer” for the Australian economy and investors, according to South Australia’s Prime Minister, James Weatherall. Unfortunately for Aus- tralia, this new bonanza lies at the least a decade away. While the country is resource rich it is cash constrained and has a small domestic market with much of its electricity supply dependent on power station grade coal. Shale gas development will have to wait its turn as other, more profitable conventional gas and coal seam gas export-led projects enjoy a higher priority in the development schedule. Much of Australia’s current natural gas output is
already destined for overseas markets, especially the nearby northern Asian market, most notably China, South Korea and Japan. Shale gas investors in Australia hoping to profit from exports to China, will have to bear in mind that China, like Australia, has significant reserves of its own and is also planning to develop its
Below: Barnet Rock Shale Pipeline One during
construction in Texas, US
Left: Shale gas drilling at Lublin in Poland, which hopes to be a European leader in shale gas production
November 2012 | PIPELINE COATING 15
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50