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Onshore Natural Gas: Coal Seam Gas

Queensland coal seam methane well (Image Copyright Origin Energy, 2002).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.

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Temporary ban announced
The Victorian Government has introduced a temporary ban on coal seam gas exploration licences and on the use of hydraulic fracturing for onshore natural gas.

What is coal seam gas?
Learn more about coal seam gas, exploration and extraction.

Fact sheets

Fact sheets
Read fact sheets on why gas is important, gas exploration and production, regulation and the rights of landholders.

Regulation of the coal seam gas industry
Victoria has a strict regulatory regime, based on the Mineral Resources (Sustainable Development) Act 1990 (MRSDA).

Information for landholders and the community 
Information for landholders and communities who are potentially affected by coal seam gas exploration activities.

Information for industry
Information for landholders who are affected by the earth resources industry.