State Gas ships first cargoes of high-density CNG

Queensland-based State Gas has shipped its first cargoes of high-density compressed natural gas (CNG) using its virtual pipeline trailers, the company said on May 20.

These initial shipments mark the beginning of an offtake arrangement announced on April 5, aimed at utilising State Gas’s CNG in a trial of hybrid (diesel/natural gas) mine-truck engine technology at a coal mine in Central Queensland.

The volume of gas shipped will increase progressively over the coming weeks, coinciding with the ramp-up of gas production from State Gas’s CNG plant and the integration of hybrid truck engines into the mine's operating fleet at the customer’s site.

State Gas will process coalbed methane (CBM) from its Rougemont 2/3 well into CNG at its pilot plant. This facility will have the capacity to compress up to 1.7 terajoules (TJ)/day of pipeline-quality natural gas, serving users in the Southern Bowen Basin and surrounding areas. Specially designed gas tube trailers will transport the CNG to remote customers who lack access to traditional pipeline infrastructure.

In addition to these shipments, State Gas plans to truck CNG to market to commercialise its proven gas resource at the Reid's Dome project in Queensland. The company believes that its CNG supply approach will open substantial opportunities for natural gas to be used in various commercial applications, supporting lower carbon emissions.