Unlike conventional gas, coal seam methane production cannot easily be halted. So as the sector grows, capacity for gas storage during low-demand periods will become increasingly important.

Moomba’s proximity to several depleted reservoirs would enable underground storage and could see the plant become a hub for CSM distribution, Santos executive vice president of operations Jon Young told journalists at a media briefing at Moomba last month.

CSM gas could soon be competitive against conventional gas in southeast Australia, as rising prices for gas were coming close to covering the cost of moving Queensland CSM through Moomba, according to Young.

“The price points are close to being aligned, but the market has also got to be there and the technology must also be there for the coal seam producers to be able to get gas reserves booked,” he said.

A recent $8 million modification to the company’s Ballera gas plant in southwest Queensland and the Ballera-Wallumbilla pipeline means CSM from Queensland can now be piped to Moomba for storage and for distribution throughout southeast Australia.

“It’s potentially a precursor of seeing coal seam gas being a competitive supplier into southern markets,” Young said.

Santos operates Australia’s biggest CSM project, Fairview, but Young said the company would also talk to other producers about gas storage and delivery.