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State Gas CNG facility progresses

State Gas CNG

The construction of State Gas’ compressed natural gas (CNG) facility is progressing and is on track to start commissioning activities in mid-January 2024.

Construction crews have remobilised to site and experienced significantly improved productivity due to more favourable weather conditions, the company told the ASX.

Prefabricated foundations are now being set in place on the CNG facility pad, with all major pieces of equipment currently being installed.

State Gas said the company is confident construction work can continue efficiently, despite potential rain forecasts.

Trenching and pipework is also now complete, and the surface rehabilitation of the pipeline corridor is in progress.

The company remains on track for mechanical completion of the CNG facility, which started production in November 2023, and expects the start of plant commissioning activities to begin in January 2024.

Following the successful capital raising transaction completed by State Gas, the company was also able to complete the assembly of critical components of the CNG plant in its Brisbane construction yard.

The company intends to commence initial gas sales through its virtual pipeline as part of the commissioning process.

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