Coalbed Methane (CBM) Corral Message Board

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Gold/Mining/Energy : Coalbed Methane (CBM) Corral

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From: zebra4o1	2/22/2009 7:19:37 PM
	of 365

Some perspective on CBM for LNG in Australia. (background: The CBM feeding frenzy in Queensland continues) Woodside CEO on coal seam LNG projects. ALAN KOHLER: You mentioned coal seam gas, why hasn't Woodside done anything with coal seam gas; don't you think much of it? DON VOLTE: Well there's two reasons. Number one, we have such a big portfolio of undeveloped gas ourselves from our what you might call more conventional gas resources in Western Australia offshore and also the Timor Sea. That should keep us busy for a decade or two to come. Number two is that we've taken a look at prices other people view that to be worth. We know the issues with literally thousands of wells that have to be drilled to produce a feed into the plants, the plants aren't any trick at all, those are easy to build...not easy to build but they're to be built. It's onshore, there's a lot of water issues, there's a lot of distribution. I think there's going to be plants built there but I think there's going to be a large consolidation. There will probably be one or two projects that get off. I just don't believe there could be four, five, six, seven projects, it won't support that kind of a feed. ALAN KOHLER: So you think the Queensland methane province will get developed to some extent but not to the same extent that perhaps people are projecting? DON VOLTE: It's very easy right now. There's lots of reasons. To put coal bed methane contingent resources in your company's portfolio, you can put large contingent resources and have them in your books. What I'm waiting for is the first front end engineering and economic analysis of this gas to get to the stage where board of directors have to make 10 and $15 billion commitments to build. What are the economics of this lean gas? Where's the market place for it? abc.net.au

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