Project Profile
Value: US$400 million
Location: Gloucester Geological Basin, New South Wales, Australia
Start-up Year: 2013
The Gloucester Gas Project is a coal seam gas (CSG) project located in Petroleum Exploration Licence (PEL) 285, which fully encompasses the Gloucester Geological Basin in New South Wales. The project is wholly owned and operated by AGL. In February 2011, the independent NSW Planning Assessment Commission (PAC) approved the Gloucester Gas Project.
The Gloucester Gas Project includes:
The Stage 1 Gas Field Development Area - including up to 110 gas wells and associated infrastructure including gas and water gathering lines
A Central Processing Facility – for compression and processing of the extracted gas, and a water treatment plant
An up to 15MW gas fired electricity generating facility;
A gas transmission pipeline between the central processing facility and the existing gas supply network at Hexham; and
A delivery station at Hexham to connect the transported gas to the existing Sydney-Newcastle trunk pipeline.
In late 2008, AGL purchased PEL 285 from Lucas Energy Pty Limited and Molopo Australia Limited. In 1992, the Licence had been granted to Pacific Power under the Petroleum (Onshore) Act, 1991. Pacific Power operated the permit until Lucas (as operator) and Molopo purchased the licence in 2002. Key gas targets in the Gloucester Basin are the coals from the Upper Permian Gloucester Coal Measures. In 2009, AGL conducted a core hole drilling program. High gas contents have been confirmed in all 18 core holes that have been drilled. In the region\'s wells, AGL has found hydraulic fracturing to be a valuable method for increasing gas flow. In 2009 and 2010, AGL conducted seismic exploration.
Seismic is an exploration method used to create a map of the structures beneath the Earth\'s surface. The method sends seismic waves, similar to very low frequency sound waves into the Earth, where the different rock formations then reflect the waves back to the surface, and they are recorded over a period of seconds. Geologists are currently interpreting the data collected from 3D Seismic performed in 2010. Based on the conclusions from the interpretation, additional exploration holes will be drilled. AGL has invested around US$400 million on this project.
Operators:
AGL Energy: Operator with 100% interest