Coalbed Methane

Untapped Energy Resource of Pakistan

Concept Presentation by: Zahoor Abbasi Delta Engineering, San Diego, California.

Primary energy source of natural gas is Methane

Methane (natural gas), generally associated with petroleum, also occurs within coal deposits.

What is Coalbed Methane (CBM)?

During the coalification process, large quantities of methane gas are generated and stored within the coal seams.

Biogenic Methane- formed by bacterial action in the coal, usually found in low ranking coals. Thermogenic Methane- formed by heat and pressure, usually found in high ranking coals.

Coalbed Methane is different from UCG

Methane recovery from Coal is a totally non destructive environment friendly process. UCG burns and destroys the Coal and pollutes Groundwater with deadly toxins.

Methane recovery has no effect on the physical or chemical properties of coal.

Coal retains its integrity as a minable resource

Coal is naturally fractured with regularly spaced, fractures known as cleats

Coal acts as both the source and storage reservoir for Methane.

Coalbed Methane (CBM)

CBM exists in a near liquid state, as a monomolecular layer lining the micro-pores within the coal matrix and in open fractures.

Coal Geology - CBM Concepts

Methane is stored within the coal by a process known as adsorption*.

Methane molecules adhere to the surface of coal, held in place by hydrostatic pressure.
*Note that this process is adsorption, and not absorption

CH4

Desorption Gas release

CH4

CH4

As the pressure in the coal seam is reduced, methane is desorbed and released.
CH4

CH4

CH4

Methane diffuses through the coal, flows through the fracture system and on to be produced.

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CH4

CH4

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Unlike a conventional reservoir. Natural gas in coal is stored on the (very large) internal surface areas within the coal structure.

Coal can store 6 to 7 times more gas than a conventional gas reservoir of equal rock volume.

CBM Recovery

A bore hole is drilled into the coal seam and a recovery well is installed.

As water is pumped out and the pressure within the coal seam is reduced, the trapped Methane is released.

Produced water is sent to a separator in order to recover any dissolved gas. The water is re-injected into the formations, or sent for further treatment
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Much of the coal, and thus the methane, lie at shallow depths, making wells easy to drill and inexpensive to complete.

Drill, Case & Complete: $200,000 per well.

U.S. Department of Energy.

2010 U.S. CBM production 1.90 Tcf (5,200 Mmcfd) 8% of the total U.S. natural gas consumption of 24 Tcf

Location
Green River Basin, Utah Piceance Basin, Colorado San Juan Basin, Colorado Northern Appalachian Basin Powder River Basin, Wyoming Black Warrior Basin, Western Washington Basin Illinois Basin Raton Basin, Colorado Uinta Basin, Utah

CBM Reserves (Tcf)

134 99 90 61 60 23 24 21 10 10
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Estimated total Coal reserves 800 Billion tons. Annual coal production 400 Million tons. Estimated 31 Tcf recoverable Coal Bed Methane reserves.
(The Wyoming Oil and Gas Commission - 2002)

Powder River Basin: Produces 37% of the USA's coal.

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Powder River Basin:

A total of 3.7 Tcf of CBM has been produced so far. 2009 CBM production hit a record 558 Bcf (1,530 Mmcfd).
Wyoming State Geological Survey.

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Capital Costs, typical CBM Well, Powder River Basin

Source: U.S. Department of Energy, The Economics of Powder River Basin CBM Development.

Cost Item
Land Costs and Permits Well Drilling and Completion (@790 feet Water Gathering & disposal Electric Power Gas Gathering

Capital Costs($)
15,000 100,000 27,000 13,000 45,000

Total

$200,000

At a wellhead price of $4.00/Mcf, development of Powder River Basin Coalbed methane has:
An average finding cost of $.71/Mcf.
A Mean well has a return-on-investment of 4.70:1

A net present value index of 3.74.

Rocky Mountain Oil & Gas Technology Symposium, April 2007, Denver, Colorado, U.S.A.
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Raton Basin (Colorado)

2010 CBM production: 110 Bcf

300 Mmcf per day

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Horseshoe Canyon, Alberta Canada.

CBM reserves 3.5 Tcf

Coalbed Methane production: 750 Mmcfd.

CBM production Costs: $3.00 per Mcf
National Energy Board
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CBM & Conventional Gas Production wells

An average Coalbed gas well produces between 50 to 500 thousand cubic feet (Mcf) per day.

Conventional gas wells produce between 1 to 5 million cubic feet (Mmcf) per day. Some wells in the extremely productive CBM areas of the San Juan basin in Colorado & N.M. produce up to 3 Mmcf of methane per day.

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San Juan Basin, Colorado/New Mexico. Cumulative CBM production 15.7 TCF 2010 CBM production 2.8 Bcf/day
Example:

CBM production 650 Mmcf/day

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Indonesias Coalbed methane reserves are estimated @ 450 trillion cubic feet (Tcf) BP and ENI CBM joint venture - 1,700 km2 block Sanga-Sanga, Kutei Basin, Kalimantan, Indonesia.

CBM Development Cost of US $2 per Mcf

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Reliance Gas conducted a geologic assessment of lignite coal basins in Rajasthan and Gujrat, India: Identified a 20,000 Sq km area with estimated CBM reserves of 70 Tcf with 28 Tcf recoverable. Production potential of 3.8 (Bcf)/day.

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Thar Coalfield, Sindh, Pakistan

Thar basin, estimated CBM reserves 35 Tcf, Recoverable - 21 Tcf.

Cathay Oil & Gas. Sourcing USGS.
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Pakistan

Thar

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CBM project, Barmer Basin, India.

Adsorption isotherm studies and Desorption tests indicate a gas content of 106 -140 scf/ton of lignite in 600-1200m depth range, seismic surveys indicate that the lignite seam is often faulted & fractured which accounts for high permeability & better gas flow.

Block
Barmer (BS 4)

State
Rajasthan

Acreage
1168 sq kms 739 sq kms

Estimated CBM Estimated CBM Reserves (TCF) Production

2.9 TCF

107 MMCFD

Barmer (BS 5)
Total

Rajasthan

1.3 TCF

35 MMCFD 142 MMCFD

Ministry of Petroleum & Natural Gas GOVERNMENT OF INDIA

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Barmer Basin, Rajasthan, India.

Cairn oil and gas (E&P) Company.
Directorate of Petroleum, Rajasthan.

Year

Production rate Crude Oil (Bpd) Natural Gas (Mmcfd) 32 53

Anticipated (CBM) Coalbed Methane (Mmcfd)

2010-11 2011-12 2012- 14

125,000 175,000

142

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Thar

Thar coal deposits are the western extension of Cambay & Barmer basins, India. Cairn: 2010 production:
13,714 Bpd Crude Oil. 28 Mmcfd Conventional Gas. 8,966 Bpd Condensate.

Barmer Cambay

Cambay Basin CBM reserves :

13 trillion cubic feet .

Thar Coal Field - Sindh, Pakistan.

CBM reserves estimated by USGS @ 200 Scf/ton
Recoverable Coalbed Methane (CBM) Recoverable percentage Estimated annual production after 10 years Estimated daily production (after 10 years)
Cathay Oil & Gas, March 18, 2006.
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35 Tcf
21 Tcf 60% 330 Bcf 900 Mmcfd

Hydrocarbon Energy, Cost per Mmbtu. Thar Coal* Coalbed Methane** $3.70 $3.00

Natural Gas
LNG Fuel Oil

$3.50
$10.00 $14.00

*Thar coal@$37/ton 2000lbs X 1,000,000 5,000btu/lb =$3.70/MMBTU **National Energy Board Canada and CBM production estimates for India, China, Indonesia & Vietnam.