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Huntly coal seam gas flows steadily increasing says Solid Energy
12 August 2008, Sources: Solid Energy and Lindsay Clark - Test flows of coal seam gas from appraisal wells drilled in the Huntly coal field last year have been steadily increasing production since testing began.
Solid Energy says that the five appraisal wells, drilled in partnership with US-based Resource Development Technology, are now producing a sufficient flow of methane gas to power about 1,000 homes if the gas was converted to electricity.
Brett Gamble, general manager new energy for Solid Energy, says that with up to 300 petajoules of gas in place the Huntly field could provide a significant contribution to New Zealand’s future gas supply.
Developing that potential, however, would be a substantial investment and the commercial drivers need to be there to support it.
Mr Gamble says, “We’re far enough through the project to know there is gas there and that it’s technically feasible to extract it.”
The next stage would be commercialisation.
“With coal seam gas in its infancy in New Zealand, access to specialist drilling and well completion equipment can be difficult and expensive.
“Evaluating ways to reduce drilling costs, along with developing market and gas delivery options will allow us to firm up the project value. We expect to be making a decision on that by the end of the year,” Mr Gamble says.
Interim options include small scale on-site power generation or compressing the gas for delivery by tanker.
