Coal Seam Gas (CSG/CBM) in Asia – Market Analysis, Investment Scenario, Production Forecasts and Competitive Landscape to 2015
Global Data’s new report, “Coal Seam Gas (CSG/CBM) in Asia – Market Analysis, Investment Scenario, Production Forecasts and Competitive Landscape to 2015” analyzes the development of Coal Bed Methane (CBM) resources in Australia, China, India, Indonesia and Vietnam.
The report assesses the CBM potential in each of these countries with a focus on CBM reserves, basins and current production (if any). It elaborates on various government, regulatory policies and CBM production targets to promote the development of CBM resources and examines their impact on the growth of CBM. The development of the CBM market in each of the countries in relation to exploration and planned projects and the utilization of CBM has been provided in the report. The report analyzes the competitive scenario of the CBM market in each country, focusing on the important companies engaged in CBM exploration and development and their operations.
The report details investments, mergers and acquisitions in the CBM market in each country and forecasts CBM production in Australia, China, India and Indonesia to 2015.
Coal Seam Gas /CBM Production in Australia, China, India and Indonesia will Witness Significant Increase by 2015
The CBM or Coal Seam Gas (CSG) production in Australia, China, India and Indonesia is expected to witness a significant increase by 2015. Increasing domestic energy demand, regulatory and policy changes favouring CBM development, attractive fiscal terms, Production Sharing Contracts (PSCs) and aggressive government targets will accelerate the commercial production of CBM by 2015. The total CBM production from these countries will increase from the current 14.9 million standard cubic meters per day (MMscmd) in 2009 to 65.MMscmd in 2015, reflecting a four-fold growth in CBM production.
CBM Market, Australia, China, India and Indonesia, Current and Targeted CBM Production, MMscmd, 2009-2015
Cooperation Between Domestic and Foreign Companies Spurs CBM Development In China, India, Vietnam and Indonesia
The governments of coal-rich Asian countries have opened up CBM exploration to foreign companies. Foreign participation has provided much needed investment and brought in expertise and experience to develop the CBM projects. Asian countries have attracted significant foreign collaboration through the award of CBM blocks through competitive bidding. In India, Directorate General of Hydrocarbons (DGH) has awarded 33 blocks so far in four CBM licensing rounds. China has awarded 27 blocks in 30 PSCs. Indonesia has 20 PSCs in place, while Vietnam has two PSCs so far. Among the foreign companies, Dart Energy and BP plc have a significant presence. In China, 18 foreign companies are active in CBM exploration in 27 blocks. In Indonesia, Exxon Mobil, BP and ENI SpA have important CBM blocks. Dart Energy and Keeper Resource Inc. are dominant players in the CBM exploration in Vietnam. The table below gives the details of foreign and government companies active in CBM exploration and production in China, India, Indonesia and Vietnam.
CBM Market, China, India, Indonesia and Vietnam, Foreign and Domestic Companies Active in CBM Exploration and Production, 2010
Conducive Government Polices and Concerns Over the Reduction of Green House Gases Trigger the Development of CBM Reseources
The development of CBM resources is dependent on government policy and regulations. To continue the growth of CBM resources and ensure economic viability against competition from other energy sources, governments have formulated policies conducive to the commercial production and utilization of CBM. These measures include attractive terms for PSCs and fiscal incentives to improve commercial production, preferential use policies and market driven pricing to promote the end use of CBM resources. While China has immensely benefited from its CBM/Coal Mine Methane (CMM) recovery and utilization policy, India is yet to come up with such a policy. In 2008, Indonesia brought about significant changes to PSCs to remove the ambiguity concerning the ownership of CBM acreage in the case of the overlapping rights of coal miners and oil and gas operators. In Australia, the Queensland Gas Scheme helped the consumption of power generation by mandating that a fixed percentage of the power must come from gas-fired generation.
Recognizing the potential of CBM/CMM as a clean fuel, many methane recovery and utilization projects have become operational in China. Several such projects are funded by United Nations Development Program (UNDP) and the World Bank and are registered as Clean Development Mechanisms (CDM), under the United Nations Framework on Convention on Climate Change (UNFCC). The CDM projects, through Emission Reduction Certificates (CERs), ensure the economic viability of the projects and sustain growth. India too is assessing the potential of CBM to CDM projects, though it does not have any specific regulations.
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