Sydney, May 30, 2023 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) is pleased to provide an update on the importation and commissioning of equipment to support production testing and early-stage gas sales from its Rolleston West (ATP 2062) and Reid's Dome (PL 231) projects in the southern Bowen Basin. The Company remains on-track to deliver first gas sales utilising its virtual pipeline trucking solution in July 2023.
The compressor has returned to Australia after offshore fumigation and was delivered to the Company's engineering yard on 17 May 2023. The compressor is in good condition and State Gas is confident it can support 1.7TJ/day of gas production as originally proposed. Fabrication and factory acceptance testing of the dehydrator is also now complete and the unit was shipped from the Port of Shanghai on 27 May 2023.
Over the coming weeks, this equipment and other associated assets will be brought into compliance with Australia Standards for mechanical and electrical operation and shipped to site for commissioning.
Executive Chairman, Richard Cottee said "Despite the ongoing frustrations with international supply chain constraints, the Company is now close to commissioning its CNG processing equipment and is on-track to commence sale of compressed natural gas in July 2023. Given the spot price domestically is already hovering over $20/GJ, the wait has proved worth it."
About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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