Natural Gas: An environmentally An environmentally attractive - - PowerPoint PPT Presentation

Natural Gas: An environmentally attractive source of energy Natural Gas: An environmentally attractive source of energy Part two

• Environment
• Gas is the cleanest fossil fuel
• Gas fired power generation is the lowest

cost means to reduce GHG emissions

• Gas fired power generation compliments

renewables – solar and wind

• NSW gas supply
• Limited conventional gas supplies
• Contracted gas supplies run out between

2014 and 2017.

• Already heavily reliant on coal fired power,

limited gas fired power generation

• Demand for gas expected to grow to 30%
• f total energy supply in the next 25 years
• Business and employment

Why NSW gas development is important

USA – August 2012:

• Amount of CO2 released into atmosphere the lowest for 20

years

• Biggest reason for decline is using gas rather than coal to

generate electricity Emission intensity by technology

Page 2

President Barack Obama

Page 3

Quotes from transcript of President Barack Obama's speech yesterday at Georgetown University (June 25, 2013) announcing his new climate-change policy.:

• We should strengthen our position as the top natural gas producer because, in the medium term at least, it not only

can provide safe, cheap power, but it can also help reduce our carbon emissions

• The bottom line is natural gas is creating jobs. It's lowering many families' heat and power bills. And it's the

transition fuel that can power our economy with less carbon pollution even as our businesses work to develop and then deploy more of the technology required for the even cleaner energy economy of the future

• Federally supported technology has helped our businesses drill more effectively and extract more gas. And now,

we'll keep working with the industry to make drilling safer and cleaner, to make sure that we're not seeing methane emissions, and to put people to work modernizing our natural gas infrastructure so that we can power more homes and businesses with cleaner energy.

• We're going to partner with our private sector to apply private sector technological know-how in countries that

transition to natural gas

One CSG well typically produces the equivalent energy of 85,000 tonnes of coal….. …. and up to 70% of the greenhouse gas emissions when used to generate electricity

The energy equation

Page 4

Different forms of hydrocarbon accumulations

Metgasco is focussed on conventional / tight gas and coal seam gas

Schematic geology of natural gas resources

Page 5

Natural gas from coal and sandstone

dewater stable decline

time

Gas Water Gas Water

time Coal seam well profile Conventional well profile

Page 6

How we drill our vertical wells

Drilling a deep conventional well – e.g. Kingfisher E01 Depth 2100 metres

Page 7

How are our coal seam gas wells drilled?

Horizontal drilling (e.g. Harrier 01)

Page 8

Hydraulic fracturing creates a pathway for gas flow

• Metgasco has not used fraccing in its CSG activities
• Fraccing involves water and sand being pumped into the

well at high pressure to create a fracture

• Fracture is held open using proppant (e.g. sand)
• Gas is collected from the fracture in the well and produce at

surface

• Fraccing can be managed safely and has been common

gas field practice worldwide for 60 years. Globally, there are 35,000 wells fracced yearly

• No credible evidence that links fraccing to damage to

aquifers.

What is hydraulic fracturing?

Page 9

Chemicals used in Kingfisher nitrogen foam frac

Name Chemical Commonly found in Acetic Acid Acetic Acid Vinegar K-35 Sodium Carbonate Washing soda K-34 Sodium Bicarbonate Baking Soda – in all baked goods FE-2 Citric Acid Lemon juice GasPerm1100 Ethanol Alcohol Hydrochloric Acid Hydrochloric Acid Pool chemical HAI-150 No hazardous materials GEL-STA L Stabiliser Sodium Thiosulfate Anti fungal and Tinea treatment KCL Potassium Chloride Potassium Chloride Fertiliser NF-6 Vegetable Oil Deep frying NF-6 Aluminium Stearate E573 in chewing gum, instant coffee, baked goods Caustic Soda Sodium Hydroxide Drain cleaner SP Breaker Sodium Persulfate Bleach hair cosmetics HC 2A Foaming agent used in shampoos and other toiletries BC-140 Monoethanolamine Borate In cosmetics for controlling viscosity BC-140 Ethylene Glycol Brake fluid BE-6 2-Bromo-2-Nitro-1,3-Propanediol Used as preservative in cosmetics CAT-3 Activator EDTA/Copper Chelate Fertiliser WG-11 Guar Gum E412 used as a thickener in salad dressings, barbecue sauces BE-7 Sodium Hypochlorite Laundry bleach, solid pool chlorine Sodium Hydroxide Dishwashing tablets

• All approved chemicals with MSDS’s – None of the chemicals are secret
• BTEX free
• Very small concentrations used
• Any discharges are controlled

Source: Metgasco Ltd Page 10