CNG Facility Construction Update
Brisbane, Jan 18, 2024 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) provides this update on the construction of its compressed natural gas ("CNG") facility that will enable the processing and initial sale of production testing gas from the Company's Rolleston West Project.
Construction and electrical crews have remobilised to site to complete the CNG facility works. The remaining key components of the plant are expected to arrive on site this week after obtaining third party certification. Mechanical completion of the CNG facility is expected to occur shortly after those components are installed. All power and lighting cables have been installed and remaining instrumentation cables will be completed by the weekend. All gas, water and pneumatic lines are tested and ready for service. Final tie-in of the Rougemont 2/3 dual lateral coal seam gas well to the CNG facility will also be completed this week. Surface rehabilitation of the pipeline corridor and the area surrounding the CNG facility pad is well underway. A formal commissioning plan has been developed and pre-commissioning activities will commence next week.
The work undertaken to weather-proof the access road and CNG facility pad have proven worthwhile with the site remaining in good condition despite continuous rain over the last few weeks. The Company is confident that mechanical completion and plant commissioning can proceed even if wet weather persists.
It also means that post commissioning, State Gas will be able to maintain continuous truck access to the facility, which will be critical for continuity of our future gas supply commitments.
The Company intends to commence initial gas sales through its virtual pipeline as part of the commissioning process and is currently working with its offtake partner to finalise details of that supply arrangement to commence later this month.
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About State Gas Limited
State Gas Limited (ASX:GAS) is a Queensland-based developer of the Reid's Dome gas field, originally discovered during drilling in 1955, located in the Bowen Basin in Central Queensland. State Gas is 100%-owner of the Reid's Dome Gas Project (PL-231) a CSG and conventional gas play, which is well-located 30 kilometres southwest of Rolleston, approximately 50 kilometres from the Queensland Gas Pipeline and interconnected east coast gas network.
Permian coal measures within the Reid's Dome Beds are extensive across the entire permit but the area had not been explored for coal seam gas prior to State Gas' ownership. In late 2018 State Gas drilled the first coal seam gas well in the region (Nyanda-4) into the Reid's Dome Beds and established the potential for a significant coal seam gas project in PL 231. The extension of the coal measures into the northern and central areas of the permit was confirmed in late 2019 by the Company's drilling of Aldinga East-1A (12 km north) and Serocold-1 (6 km to the north of Nyanda-4).
State Gas is also the 100% holder Authority to Prospect 2062 ("Rolleston-West"), a 1,414 km2 permit (eight times larger than PL 231) that is contiguous with the Reid's Dome Gas Project. Rolleston-West contains highly prospective targets for both coal seam gas (CSG) and known conventional gas within the permit area. It is not restricted by domestic gas reservation requirements.
The contiguous areas (Reid's Dome and Rolleston-West), under sole ownership by State Gas, enable integration of activities and a unified super-gasfield development, providing economies of scale, efficient operations, and optionality in marketing.
State Gas is implementing its strategic plan to bring gas to market from Reid's Dome and Rolleston-West to meet near term forecast shortfalls in the east coast domestic gas market. The strategy involves progressing a phased appraisal program in parallel with permitting for an export pipeline and development facilities to facilitate the fastest possible delivery of gas to market. State Gas' current focus has been to confirm the producibility of the gas through production testing of the wells.
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