Global Coal Seam Gas Market - Forecast(2023 - 2028)
Global Coal Seam Gas Market Overview
Global
coal seam gas market size is estimated to reach US$2.1 billion by 2027, after
growing at a CAGR of 3.7% during 2022-2027. Coal seam gas is a natural gas which
is found in natural coal deposits and is formed during formation of coal. The
gas is extracted from coal seam either by drilling or by hydraulic fracturing
in which fluid is injected under high pressure in coal seam to widen the
fractures in order to release the gas. The coal seam gas is of various types
like coalbed methane, coal mine methane etc. which are collected from unmined
coal reserves formed between sedimentary and metamorphic rocks. The major
application of coal seam gas is in power generation, vehicles fuels, and feedstock
for making plastics & fertilizers. Hence, for such applicability, coal seam
gas is majorly used in automotive, power industry, agriculture and plastics
sector. Factors like, increase in commercial vehicles consumption, high demand
in power sector and increase in fertilizer production are driving the growth of
global coal seam gas market. However, extraction process like hydraulic
fracturing can cause certain environment problems like ground water
contamination, which can hamper the growth of global coal seam gas industry.
COVID-19 Impact
The lockdown
implemented by countries all across the world, so as to prevent the wide spread
of COVID-19 negatively impacted the productivity of various industrial sectors
including oil & gas sector. Hence, due to lack of availability of labors,
the production volume of natural gas declined, and also the lockdown
restriction led to decrease in the consumption volume by end users of natural
gas like plastic, automobiles. For instance, as per PlasticEurope, in 2020, the production
of new plastics was down by 51% at 55 million tons. Also, as per the International Organization
of Motor Vehicle Manufacturing, in 2020 there was a 16% global decline in
vehicles production. Hence, besides the end users there was reduction in
productivity and global demand of natural gases also. For instance, as
per International Energy Agency, in first quarter of 2020, the natural gas
driven drilling in US was 110 rigs compared to 190 rigs in 2019 for same
period. Further, as per another report of International Energy Agency, in 2020,
there was 4% decrease in global natural gas demand. The decrease in global
demand of natural gas and production capacity of its end users had a negative
impact on the usage of natural gas like coal seam gas.
Report Coverage
The report: “Global Coal Seam Gas Market
Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth
analysis of the following segments of the Global Coal Seam Gas Industry.
By Form – Coalbed Methane,
Coal Mine Methane, Abandoned Mine Methane, and Underground Syngas
By Process – Drilling (Vertical
Drilling, Horizontal Drilling), Hydraulic Fracturing
By Application – Power Generation,
Vehicle Fuel (LNG, CNG), Feedstock (Thermoplastics, Fertilizers Others), and
Others
By End User – Automotive (Cars,
Heavy Duty Trucks, Light Duty Vehicles, Others), Energy & Power Industry,
Plastic (Polystyrene, Polypropylene, Polyethylene), Agriculture, Chemicals, and
Others
By Geography - North America (USA, Canada, Mexico), Europe
(UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of
Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New
Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil,
Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle
East, Africa)
Key Takeaways
- North America
dominates the global coal seam gas industry, as the region has countries like
United States, Canada, Mexico which are leading producers as well as consumers
of natural gas.
- Coal seam gas is
more preferred over shale gas on account of having less manufacturing cost,
higher gas concentration, shallow reservoirs and less need of fracture
stimulation
- Coal seam gas (CSG) is
simply natural gas, which consists mainly of methane which is used every
day to generate electricity, run home appliances, and fuel vehicles
Global Coal Seam Gas Market Segment Analysis – By Form
Coalbed
methane held a significant share in global coal seam gas market in 2021, with a
share of over 32.0%. Coalbed methane is increasingly used for industrial and
utility purpose like as feedstock is used in plastic manufacturing, and as
gasoline is used for automobile fuel. The rapid development in these sectors
has increased their scale of productivity, which has positively impacted the
usage of coalbed methane. For instance, as per PlasticEurope, in 2021, the
plastic production in Europe increased by 11.3% compared to 2020. Also, as per National Automobile Dealers
Association, in 2021, the vehicles sales in US for Q2 was 17 million units, in
which 76.9% was light trucks & sports utility vehicles (SUVs). Such
increase in productivity of plastics and automotive sector will increase the
demand for coalbed methane to be used in them. Hence, this will positively
impact the growth of global coal seam gas industry.
Global Coal Seam Gas Market Segment Analysis – By End User
Energy and power sector held a significant share in
global coal seam gas market in 2021, with a share of over 27.0%. Coal seam gas
is majorly used in power plants as fuel for gas turbines which when spins
generates electricity. The coal seam gas burns more efficiently than coal and
emits less greenhouse gas emission. Hence, with the growing demand for
gas-powered electricity, the usage of natural gas in power sector has
increased, which will positively impact the usage of coal seam gas. For
instance, as per International Energy Information Administration, in 2021, in
European countries gas fired power generation increased by 5%, with Spain &
Italy showing 25% increase and Turkey 17%. Also, as per another report by
Energy Information Administration, in 2021, gas
consumption in power generation increased by 15% in Brazil, 12% in Peru, and
10% in Chile. The
increase in demand and consumption for natural gas by power sector will lead to
more usage of coal seam gas as fuel in this sector, which will positively
impact the growth of global coal seam gas industry.
Global Coal Seam Gas Market Segment Analysis – By Geography
North America held the largest share in global coal seam gas
market in 2021, with a share of over 30.0%. The region has major economies like
United States and Canada which are one of the major producers of natural gases
like coalbed methane and is considered as important source of energy in these
countries. The increasing in demand for clean source of fuel has led to
increase in production of natural gas in this region. For instance, as per US Energy
Information Administration, in October 2021, the dry natural gas production
increased by 2%. Also, as per International Energy Agency, in first eight
months of 2021, industrial gas consumption in US increased by 1.8% whereas
other sectors like gas network & energy sector showed increase of 1.4%.
Further, natural gas consumption in Canada increased by 4% in first ten months
of 2021, whereas pipeline exports to the United States increased by an
estimated 17%. Coalbed
methane is used as a clean energy source of compressed natural gas for
multiple domestic and industrial purposes, which in turn, will positively
impact the growth of global coal seam gas industry in North American region.
Global Coal Seam Gas Market Drivers
High Demand of Passenger Vehicles
Coalbed methane is a primary clean energy source of
natural gas and clean burning fuel like compressed natural gas (CNG), extracted
from it, is majorly used in automotive vehicles especially passenger vehicles.
The growing consumption of such vehicles will lead to increase in usage of CNG
fuels. For instance, as
per Europe Automobile Manufacturer Association, in November 2021, the new
passenger car registration in the first ten months increased up to 2.2% with an
increase shown in European Union markets like Italy showed 12.7%, Spain showed 5.6%
and France showed 3.1%. Such high consumption of passenger vehicle will
increase the usage of CNG fuel in them, resulting in more usage of coalbed
methane in production of CNG fuel. Hence this will boost the growth of global
coal seam gas industry in automotive sector.
Growing trade of Liquid Nitrogen Gas
Coal seam gas when cooled under pressure to temperature
of -161°C creates liquid nitrogen gas. Such gas is used in variety of ways
like its residential uses include cooking, heating homes, while
commercial uses include generating electricity, fuelling commercial vehicle and
manufacturing products like fertilizers, paints. LNG on account of being
cheaper and clean fuel source has led to increase it demand globally, which has
led to increase in its global trade. For instance, as per International Energy
agency, global LNG trade
expanded by 6% in 2021, a sharp acceleration from the 2020, with Asia Pacific
region registering an 8% y-o-y increase. Moreover, LNG imports into Central and
South America soared by 69%, supported by Brazil’s severe drought curtailing
hydropower generation. The increase in
global trade of LNG gas will lead to more usage of coal seam gas for its
production, thereby having a positive impact on the growth of global coal seam
gas industry.
Global Seam Gas Market Challenges
Environmental Impact of Extraction Process
In order to extract the coal seam gas formed
in coal reserves developed near metamorphic rocks, hydraulic fracturing is
used. In
such process a solution
of water, sand, and a small amount of additives is pumped at high pressure into
the coal deposit which creates cracks that releases the gas into wells for
extraction. Such process though is effective, but has various environmental
issues like ground water contamination, methane & air pollution, exposure
to toxic chemicals, fracking induced earthquakes and blowout due to gas
explosion. Hence, all of these problems associated with the extraction
of coal seam gas by hydraulic fracturing, may confine the growth global coal seam
gas industry.
Global Seam Gas Industry Outlook
The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In the global coal seam gas market report, the global coal seam gas top 10 companies are:
- Exxon Mobil (XTO Energy)
- BP PLC
- ConocoPhillips
- Australia Pacific LNG
- Shell (QGC)
- Santos
- Anglo Coal
- Arrow Energy
- AAG Energy
- G3 Exploration
Recent Developments
- In 2021, Bharat Coking Coal Ltd signed an agreement worth US$ 254.2 million with Prabha Energy Private Ltd. for commercial extraction of coal bed methane from Jharia Block I, Jharkhand under leasehold area of BCCL.
- In 2021, EIG Global Energy Partner acquired 10% stake from Origin Energy in its Australia Pacific LNG project which is the biggest coal seam gas-to LNG plant on Australia’s east coast.
- In 2019, Australia Pacific LNG has announced it will supply an additional 10 petajoules of natural gas to Santos in 2020 and 2021, and this new contract will increase company’s total domestic contracted supply commitment to over 350 PJ for 2020 and 2021.
Relevant Reports
LIST OF TABLES
1.Global Coal Seam Gas Market, by Type Market 2019-2024 ($M)2.Global Coal Seam Gas Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
3.Global Coal Seam Gas Market, by Type Market 2019-2024 (Volume/Units)
4.Global Coal Seam Gas Market Analysis and Forecast by Type and Application Market 2019-2024 (Volume/Units)
5.North America Coal Seam Gas Market, by Type Market 2019-2024 ($M)
6.North America Coal Seam Gas Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
7.South America Coal Seam Gas Market, by Type Market 2019-2024 ($M)
8.South America Coal Seam Gas Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
9.Europe Coal Seam Gas Market, by Type Market 2019-2024 ($M)
10.Europe Coal Seam Gas Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
11.APAC Coal Seam Gas Market, by Type Market 2019-2024 ($M)
12.APAC Coal Seam Gas Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
13.MENA Coal Seam Gas Market, by Type Market 2019-2024 ($M)
14.MENA Coal Seam Gas Market Analysis and Forecast by Type and Application Market 2019-2024 ($M)
LIST OF FIGURES
1.US Global Coal Seam Gas Market Revenue, 2019-2024 ($M)2.Canada Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
3.Mexico Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
4.Brazil Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
5.Argentina Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
6.Peru Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
7.Colombia Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
8.Chile Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
9.Rest of South America Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
10.UK Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
11.Germany Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
12.France Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
13.Italy Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
14.Spain Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
15.Rest of Europe Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
16.China Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
17.India Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
18.Japan Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
19.South Korea Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
20.South Africa Global Coal Seam Gas Market Revenue, 2019-2024 ($M)
21.North America Global Coal Seam Gas By Application
22.South America Global Coal Seam Gas By Application
23.Europe Global Coal Seam Gas By Application
24.APAC Global Coal Seam Gas By Application
25.MENA Global Coal Seam Gas By Application