State Gas reports delay at Queensland CNG project
ASX-listed State Gas on March 20 announced its Reid's Dome CNG project in Queensland has been delayed due to a delay in the delivery of the compressor.
“The compressor was successfully unloaded at the Port of Brisbane, however as a result of delays in loading the compressor at the point of origin (Port of Houston, Texas), Australian quarantine and inspection services have shipped the compressor offshore for fumigation,” the company said.
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State Gas expects the compressor to be landed back in Brisbane by mid-May 2023. “Our inability to commission the compressor will have a consequential delay to the original CNG project timetable. At this point, we expect the CNG project to be producing gas by July 2023,” the company added.
"While frustrating, given the flow rates being experienced, this should allow State Gas to relocate the CNG project to Rougemont. This should result in considerable operating cost savings on the project,” Richard Cottee, executive chairman, said. The production testing gas from the Rougemont 2/3 lateral well has exceeded 457,000 ft3/day.
State Gas said it continues to evaluate the quickest method by which it can have reserves declared at Rougemont that are sufficient to underwrite the financing of an approximately 20 km pipeline to a connection on the Wallumbilla to Gladstone Pipelines, allowing Rougemont gas to be brought to market.
On March 17, the Queensland government approved changes to the company's pre-existing environmental authority for PL 231, which allows State Gas to move forward with construction and commissioning activities for the CNG project. The company in November entered into a memorandum of understanding with Brisbane-based Mine Energy Solutions securing access to CNG virtual pipeline infrastructure. State Gas is planning to truck CNG to the market to commercialise its proven gas resource at Reid's Dome project in Queensland.