International gas prices and technological advancements are
prompting many countries to explore coal seam gas as a greener energy
alternative and cheap fuel source.
Natural gas contributes 23.5% of total global energy
consumption and is expected to increase to 26.32% by 2030 (Global Investment
There has been increase in the demand for Gas-to-Liquids (GTL)
especially in European and Asian mega cities which are trying to switch to
GTL is most suited for the transportation fuels market giving
it the advantage over renewable energies which are not as viable for export
(Global Investment House, 2006).
There are currently around 12 GTL exporting countries (Figure
2) including Russia, South America, Egypt, Norway, Equatorial Guinea, America
and Australia (Global Investment House, 2006). Coal seam gas is considered a
prime export resource for 8
GTL in Australia and many other GTL producing countries.
Figure 2 shows the volumes of natural gas produced worldwide
by each country showing that Australia is a significant producer of natural gas
on the global market.
Since 2004, demand for coal seam gas has increased by 164%
largely driven by strong demand from Asia and the global push for new energy
sources to reduce greenhouse gas emissions (SMI CCSG, 2011).