Market overview.

Europe market overview

The European gas market is mature with gas forming 31% of the total energy mix.  The share of gas in the overall European Union market is expected to rise to 34% by 2030, underpinned by growth in the power sector.

Residential and industrial use will remain relatively stable as high market penetration has already been achieved and population and industrial growth is negligible.  Gas supply is projected as relatively stable until 2015 with long term contracts in place for gas supplies outside the region, however, concerns over security of supply have increased sharply in recent years.

Europe CBM overview

Exploration of CBM in continental Europe over the last 30 years has been sporadic given the availability of conventional gas sources.  The industry can be characterised as immature and at an early stage of exploration.

CBM drilling has consisted mainly of single, vertical wells although there appears to be growing optimism that horizontal drilling could yield commercial gas flows from European coal seams.

Belgium, Germany, Poland, Ukraine and the United Kingdom are regarded as having the best potential for CBM in Europe based on information collected as part of coal mining activity in these countries.