State Gas to begin CNG supplies from Queensland project in November

Sydney-listed State Gas on August 22 announced that shipments of compressed natural gas (CNG) from its Queensland gas project are on track to begin in late November 2023. The company is progressing with the construction and commissioning of its CNG facility at the Rolleston West (ATP 2062) project, situated in the southern Bowen Basin.

Initially slated for a July start, the project's timeline has been adjusted due to a delay in the delivery of a crucial compressor component. State Gas is planning to truck CNG to the market to commercialise its proven gas resource at Reid's Dome project in Queensland.

State Gas has been working with its partner, Wasco, to finalise a construction contract and engineer the CNG facility, which has the capacity to compress up to 1.7 terajoules/day of gas. The facility will serve as a hub for ongoing testing and early-stage gas sales.

The primary source of gas for the forthcoming CNG shipments is the Rougemont 2/3 lateral well system. The project received a boost with promising production testing results recorded between February 2023 and May 2023. Upon connection to the CNG facility, Rougemont 2/3 is expected to contribute approximately 0.75 terajoules/day of CNG to the supply.