Gas from the company's 100% owned Reid's Dome project in Queensland will be compressed and then trucked by road approximately 60 km to a delivery point.
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Sydney-listed State Gas has initiated a project to undertake trucking of CNG to enable the start of gas sales from its central Queensland projects within months, it said on August 30.
Under the CNG trucking project, gas from the company's 100% owned Reid's Dome project (PL231) will be compressed and then trucked by road approximately 60 km to a delivery point accessing the high-pressure gas infrastructure network.
Deliveries will initially be sourced from the established conventional gas resource in the northern area of PL231. This Reid's Dome gas is immediately available and of pipeline quality, and requires only dehydration to meet pipeline specifications, State Gas said.
The company said it has sourced compression and transportation equipment to enable sales of about 1 terajoules/d. Commencement of sales is targeted for early Q1 2023. “The CNG trucking project will facilitate early gas sales to generate revenue for State Gas and help meet the current market shortfalls, while work continues for a larger capacity ‘in-ground’ export pipeline,” the company said. “On ground survey work to refine the preferred pipeline route is currently being planned, prior to seeking the requisite approvals.” Once the 'in-ground' pipeline is complete, the virtual pipeline system can be redeployed to enable the commercialisation of otherwise stranded gas, or sales of production test gas from the company's projects, the company added.
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