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Coal Seam Gas Market Size, Supply and Demand 2025

Press Release   •   Jan 12, 2018 01:43 EST

Coal seam gas is natural gas extracted from coal beds. It is found in coal deposits. Coal seam gas is an important fossil fuel formed from decomposition and pressurization of algae, plankton, and other organisms. Methane is the single largest component of coal seam gas. Coal seam gas mining employs thousands of gas wells, pipelines, compressor stations, waste water dams, and other infrastructure. Unconventional methods are employed for coal seam gas extraction. Coal seam gas contains water and gas. During coal seam gas operations, water is pumped out to lower the pressure and gas is allowed to flow onto the surface. Coal seam gas is used to generate electricity in gas-fired power stations as a low-emission alternative to electricity produced from coal. It is also used in cooking applications. Coal seam gas is an important component in many industrial processes such as production of fertilizers, plastics, and chemicals.

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Growth in the power generation industry is a key factor driving the global coal seam gas market. Coal seam gas can be used for base-load and peaking power as gas-fired electricity generation is reliable and can be quickly started and stopped. Rise in demand for natural gas for cooking applications is another key factor boosting the coal seam gas market. Recent advancements in the renewable energy sector are anticipated to augment the coal seam gas market in the next few years. According to the International Energy Agency, global demand for natural gas is expected to increase by 1.6% annually over the next few years. This is anticipated to propel the coal seam gas market during the forecast period. Rise in demand for fossil fuels in the chemical industry is also estimated to drive the coal seam gas market. However, implementation of regulations related to coal gas exploration and production activities is projected to restrain the coal seam gas market in the near future.

Based on method of exploration, the global coal seam gas market can be segmented into hydraulic fracturing and horizontal drilling. In hydraulic fracturing or fracking, fluid is pumped under high pressure into the coal seam to open up fractures. Horizontal drilling occurs at deep levels underground. It reduces the number of visible vertical wells located above the ground. In terms of application, the coal seam gas market can be divided into power generation, cooking gas, production of chemicals; fertilizers and plastics.

The global coal seam gas market expanded significantly in 2016.This trend is estimated to continue during the forecast period. Based on demand, North America is considered a key region of the coal seam gas market. Active gas exploration activities, especially through unconventional methods, are triggering the expansion of the coal seam gas market in the region. Australia is the key country for the coal seam gas market in Asia Pacific. The coal seam gas market in the country has expanded rapidly and created valuable jobs over the last few years. Australia has made immense progress in the power generation sector.

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The market in China is also projected to expand significantly in the next few years. Active gas exploration activities in Eastern Europe are anticipated to propel the coal seam gas market. Countries in Latin America such as Brazil and Mexico have initiated offshore development activities. This is estimated to boost the global coal seam gas market. Presence of oil reserves coupled with domination of oil companies in Middle East & Africa is likely to augment the coal seam gas market in the region during the forecast period.

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