GAS & MES sign MOU for CNG Virtual Pipeline Infrastructure
Brisbane, Nov 10, 2022 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) (STGSF:OTCMKTS) has entered into a Memorandum of Understanding with Mine Energy Solutions Pty Ltd (MES) securing access to compressed natural gas (CNG) Virtual Pipeline infrastructure.
As previously announced, State Gas is planning to truck compressed natural gas to the market to commercialise its proven gas resource at Reid's Dome (PL 231), as soon as possible. The transport of compressed gas by truck, creating a 'virtual pipeline', is a globally recognised and safe process for the movement of gas. State Gas will be utilising this process to transport the gas to the pipeline infrastructure network approximately 60km away.
The gas, once produced, will be compressed and dehydrated at site to pipeline standard and loaded into new generation high pressure carbon fibre cylinders typically employed in the aerospace industry and which are compatible with hydrogen for transport by truck to the pipeline.
MES is a Queensland based technology developer which has successfully demonstrated the conversion of mobile mining equipment to operate on domestically produced gas, thereby displacing up to 80% of imported diesel in this equipment providing an immediate decarbonisation benefit. As part of the conversion, carbon fibre cylinders are installed on the equipment in a unique configuration allowing the equipment to operate safely and efficiently in all open pit mine site operations. MES and State Gas are collaborating to develop the "Virtual Pipeline" solution for State Gas.
"I am delighted to enter into this alignment with MES" said State Gas Executive Chairman Mr Richard Cottee. "MES is a locally based company finding innovative ways to do things better, just like State Gas."
"The demand for gas has never been greater and attention is moving to ensuring every possible molecule is used. I see a big future for CNG as a means of capturing gas that is otherwise too far from the market or pipeline infrastructure", Mr Cottee added.
MES Chief Executive Mr Adrian Abbott agreed: "Our Board is committed to assist the resource industry to decarbonise, and collaborating with State Gas will assist some of our clients to achieve their carbon reduction commitments through the use of domestically produced gas."
MES and State Gas share aligned environmental and commercial objectives which this project will catalyse.
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About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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