INSIGHT // INFORMATION SERIES
Find out more about...
Natural gas
Did you know?
Australia’s natural gas industry
is responsible for an estimated
100,000 Australian jobs and
$200 billion worth of investment
in new projects.1
In 2014 natural gas production
from Moomba would fuel about
3 billion BBQs.
Natural gas plays an essential role
in reducing global carbon emissions;
it is 50-70% cleaner than coal.2
If we burned a million tonnes of
natural gas instead of coal to
generate electricity, the cut in carbon
emissions would be the equivalent of
taking 900,000 cars off the road.3
6.3 million Australian homes rely
on natural gas for cooking,
heating and hot water.4
Natural gas is used to make common
brand name items in your home like
PURA milk bottles, Vegemite lids,
Tim Tam and Smiths Crisps
packaging, and Glad wrap.5
+ From power to plastic, Australians benefit from cleaner,
reliable natural gas in a wide variety of essential ways.
Where is natural gas found?
Australia has 17 significant production locations for natural gas and oil6, and
enough natural gas reserves to power a city of 1 million people for 16,000 years.7
Australian natural gas reserves
The most current natural gas
production occurs:
Darwin
+ northern South Australia
+ inland Queensland
What is natural gas?
Natural gas is an abundant Australian
energy resource which has been used
in our country for over 100 years. It is
a naturally occurring compound made
up of mainly methane. Odourless and
colourless, it is found in different types
of rocks, including sandstones, coal
seams and shale.
Natural gas has the lowest carbon
intensity among fossil fuels, emitting
less carbon dioxide (CO2) per unit of
energy generated. It burns cleanly and
efficiently, with very few non-carbon
emissions.
As Australia looks for ways to reduce
our emissions, natural gas will be seen
as a ‘transition’ fuel that supports the
increasing use of renewable energy.
It is an ideal partner with renewable
energy sources like solar and wind
power, ensuring enhanced and
consistent energy reliability for when
the sun does not shine or the wind
does not blow.
Brisbane
Perth
Adelaide
Sydney
Canberra
Melbourne
Australian Gas Reserves – conventional,
unconventional & coal bed methane
+ Bass Strait
+ offshore Western Australia
+ Timor Sea
Hobart
Methane – the main ingredient of natural gas – can be found both in coal seams
between 400 and 1,000 metres below the surface, and in sandstone and shale
layers that lie up to 4 kilometres underground. It’s a naturally occurring and
abundant resource formed over millions of years through the decomposition and
compression of prehistoric animal and plant matter.
Methane is extracted by securely drilling into seams of coal, sandstone or shale.
Different techniques can be used – including horizontal drilling and hydraulic
fracture stimulation – or ‘fracking’ – to ensure that the natural gas flows freely
and can be obtained efficiently.
Geology of natural gas8
500
0
-500
1 Wind Turbine: 65m
2 Onshore Oil and Gas Drilling Rig: 43m
3 Gas Wellhead: 1.5m
Typical Coal Seam Gas Well:
4 200m-1000m
-1000
-1500
-2000
Typical Oil or Sandstone
5 Gas Well: 1200m-3000m
-2500
-3000
6 Typical Shale Gas:
2500m-4000m
-3500
-4000
Benefits of natural gas
Today over 6.3 million Australian homes rely on natural gas for cooking and
heating their homes. As an energy source, natural gas is also helping to power
up to 40% of our manufacturing industry’s needs.9
Products like glass, steel, plastics, paint, fertiliser and fabric all rely on natural
gas by-products. For instance, the natural gas Santos supplies is a key ingredient
in plastics used in everything from water tanks and stadium seats to plastic wrap
and milk bottles.
The industry makes a significant contribution to the economy supporting 100,000
Australian jobs and over $200 billion in investments.10 It also contributes $8.8 billion
per year in royalties and taxes that pay for roads, schools and hospitals.11
Did you know?
+ 6.3 million Australian homes rely
on natural gas for cooking, heating
and hot water.
+ Australia has enough natural gas
reserves to power a city of 1 million
people for 16,000 years.
+ Natural gas plays an essential role
in reducing global carbon emissions.
Natural gas and the environment
Natural gas is the cleanest burning fossil fuel. In fact, when it is used for
electricity, it produces 50% of the emissions of burning brown coal
and uses less water.
Using natural gas is therefore one way that Australia and the world can
reduce carbon emissions. Emissions in the United States have fallen
dramatically in recent years, which many credit to their increased use
of natural gas.12
All natural gas exploration and production in Australia occurs under strict
regulatory conditions enforced by State and Federal governments to
ensure it is done safely and sustainably. Santos also has its own strict
environmental and safety standards.
Santos and
natural gas
Founded in 1954, Santos has
been active in the energy
business for more than 50
years. The company’s name is
an acronym for South Australia
Northern Territory Oil Search.
Santos made its first
significant discovery of natural
gas in the Cooper Basin in
South Australia with the
Gidgealpa-2 well in 1963. The
Moomba-1 discovery in 1966
confirmed this region as a
major petroleum province.
Natural gas supplies to South
Australia commenced in 1969.
Since then Santos has
searched for natural gas
across onshore and offshore
Australia and is a major
producer of natural gas in SA,
Vic, Qld, NT and WA. Santos
exports natural gas to Asia via
its LNG facilities in Queensland
and the Northern Territory.
Santos also has interests
in natural gas export from
Papua New Guinea.
Santos is one of Australia’s
largest natural gas developers
and is proudly Australian
owned.
See next page
for industry
references to
more information
Industry references
1.Advancing Australia – Harnessing our comparative economic
advantage, Deloitte Access Economics, June 2012
2.http://www.qenos.com/internet/home.nsf/web/RHAT-96857Y
3.Greenhouse Gas Emissions Study of Australian CSG to LNG,
Worley Parsons, April 2011
4.Energy Use and Conservation, Australian Bureau of Statistics,
March 2014
5.http://www.qenos.com/internet/home.nsf/web/RHAT-96857Y
6.Australian Energy Resource Assessment, Department of Industry
and Science, 2014
7.http://www.appea.com.au/oil-gas-explained/oil-and-gas/
what-is-natural-gas/
8.http://www.appea.com.au/oil-gas-explained/resources/
how-are-oil-and-gas-formed/
9.Energy in Australia 2012, Bureau of Resources and Energy
Economics
10.Advancing Australia – Harnessing our comparative economic
advantage, Deloitte Access Economics, June 2012
11.Advancing Australia – Harnessing our comparative economic
advantage, Deloitte Access Economics, June 2012
12.Sustainable Energy in America, Bloomberg New Energy Finance,
February 2014
Interested in learning more
about natural gas?
Visit santos.com for more fact sheets on a wide range
of gas-related topics.
Santos’ open conversation with communities
Insight is our commitment to share knowledge and
understanding about energy and extraction – because
better decisions are made when we’re all better informed.
Santos – an Australian Pioneer
An Australian energy pioneer since 1954, Santos is
a leading oil and gas producer, supplying Australian
and Asian customers. With over 3,000 employees
across Australia and Asia, Santos’ foundations are
based on safe, sustainable operations and working
in partnership with host communities, governments,
business partners and shareholders.
Registered and Head Office
Ground Floor, Santos Centre
60 Flinders Street
Adelaide South Australia 5000
GPO Box 2455
Adelaide South Australia 5001
Telephone: 61 8 8116 5000
Facsimile: 61 8 8116 5050
www.santos.com