A clean fight: environmental management strategies to drive growth, efficiency and competition in CSG

Abstract

During the past 12 months, operators in LNG–CSG have had little option but to purely focus on cost efficiencies to remain profitable after the oil price crash of 2014 (Macdonald-Smith, 2015). This is set to continue with oil hovering around the $40 per barrel price mark, and as more CSG projects transition into operations in the next five years, an alternative approach to operating must be explored to further promote competitiveness and long-term sustainability in this volatile market (Cassidy and Kosev, 2015). The purpose of this paper is to critically analyse an approach to CSG operations that considers environmental aspects as an effective alternative in addressing the range of operational challenges to improve economic outcomes for operators. Essentially, the approach highlights opportunities to improve yields and further reduce costs along the gas extraction/processing value chain while meeting the critical compliance checklist in CSG. This paper outlines the key hallmarks of an effective adaptive environmental management approach from well site to water treatment operations. It then turns to consider each of the key components that make up this approach, including the role of leadership, contracting strategies, asset management methodologies, treatment technologies, effective remediation and recovery management, and the benefits that efficient operations deliver to surrounding communities. This paper also examines key case studies that are delivering substantial savings for CSG operations in the Bowen and Surat basins. These case studies share a similar theme in their intention to generate and implement improvements in efficiency and value delivered by effective water and environmental management, each within their own context.