State Gas begins commissioning of Queensland CNG facility

Sydney-listed State Gas has achieved mechanical completion and commenced commissioning of its compressed natural gas (CNG) facility in Queensland, it said on February 29.

The CNG facility can compress up to 1.7 terajoules/day of gas. The facility will serve as a hub for ongoing testing and early-stage gas sales. State Gas is planning to truck CNG to the market to commercialise its proven gas resource at Reid's Dome project in Queensland.

The Rougemont 2/3 dual lateral coalbed methane well has been connected to the newly installed surface processing equipment and gathering system. Dewatering has recommenced in preparation for the imminent commencement of first gas production and sales. Initial CNG cargoes are set to be sold to a local coal mine, which is currently in the advanced stages of trialling diesel/gas hybrid truck engines within their coal mining fleet.

State Gas believes that its CNG supply approach will create substantial opportunities for natural gas to be used in a range of commercial applications that support lower carbon emissions.