Onshore Natural Gas: Coal Seam Gas
Coal seam gas is a form of natural gas (methane) found in coal seams, rather than in the sandstone reservoirs that hold conventional natural gas. It is of interest because Victoria’s gas demand is expected to double by 2030. If Victoria’s gas demand cannot be met from local sources then the price of gas to consumers will be significantly higher as Victoria will need to supplement its supplies with gas transported from other states.
For this reason, it makes sense to explore all possible new sources of gas in Victoria, including unconventional sources like coal seam gas to keep gas prices affordable for Victorians and to ensure gas dependent industries stay in this State.
Importantly, the Victorian Government does not want new sources of gas at any price. Development of Victoria’s resources must be carried out in a sustainable manner. The environment must be protected and positive outcomes achieved for regional communities.
There is currently no coal seam gas production in Victoria and nor are there any applications to begin production. Whilst the location of Victoria’s coal resources is well known, the amount of associated gas and the feasibility of extraction are uncertain. A number of companies have been granted exploration licences for coal seam gas.
Quick Links
- Current licences and permits
- Minerals Resources (Sustainable Development) Act 1990
- Minerals exploration and mining in Victoria: landholder information booklet
- Code of practice for mineral exploration
- Community Engagement Guidelines for Mining and Mineral Exploration in Victoria
- National Partnership Agreement on Coal Seam Gas and Large Coal Mining Development
Featured
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Temporary ban announced |
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What is coal seam gas? |
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Fact sheets |
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Regulation of the coal seam gas industry |
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Information for landholders and the community |
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Information for industry |








