State Gas’ compressed natural gas (CNG) facility remains on schedule for mechanical completion and commissioning by December 2023.
The company said it anticipates first gas to be produced in conjunction with commissioning activities.
Production will also be ramped up progressively over the next few weeks as the Rougemont 2/3 dual lateral well is brought back online.
State Gas anticipates first gas sales should begin in January 2024 in line with the demand profile of its customer.
Complex weather conditions have added approximately three weeks to the construction schedule however, the company remains focused on the January 2024 timeline.
“The company realised significant upfront cost and time efficiencies from procuring the compressor and dehydrator offshore,” State Gas executive chairman Richard Cottee said.
“Although additional costs have been incurred to make these assets compliant to Australian Standards, we have delivered a cheaper and faster path to first gas than if critical components of the CNG facility had been fabricated by domestic suppliers.
“The company remains focused on delivery of initial cargoes of CNG by January 2024.”
Construction of the facility first began in October 2023, which is set to support the processing and initial sale of production testing gas from its Rolleston West project.