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State Gas kicks off CNG plant construction

CNG State Gas

The company’s compressed natural gas (CNG) facility is set to support the processing and initial sale of production testing gas from its Rolleston West project.

“The pending commencement of construction of the CNG plant at the Rougemont site is a significant milestone for State Gas,” State Gas executive chairman Richard Cottee said.

“I am particularly pleased that the pipeline poly welding subcontract had been awarded to Magnitude Pipelines and Construction and Biira Mining and Civil will undertake civil and trenching works.

“Selection of these highly capable local businesses is an excellent example of the strong economic contribution we will continue to make in the local community.”

All major subcontracts for the civil and construction phases for the CNG facility have now been awarded.

Following the successful capital raising transaction completed during the quarter, the company was also able to complete the assembly of critical components of the GNG plant in its Brisbane construction yard.

Civil works including the laying of foundations for the facility are currently being carried out.

The compressor and dehydrator will be transported to site over the coming weeks in time for commissioning of the CNG plant to commence in November 2023.

By December 2023, State Gas should be shipping initial cargoes of CNG.

This revenue will be applied to fund the drilling necessary for reserve certification sufficient to underwrite the financing of the long-term pipeline infrastructure which will enable further scaling of the Rolleston West Project.

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