State Gas Ltd., Brisbane, has started gas production from its 100%-owned Reid’s Dome project in production license PL231 in central Queensland by trucking gas to market as compressed natural gas (CNG)—what it calls a ‘virtual pipeline.’
This is the first stage in a two-stage development. The second stage includes development of a physical pipeline and redevelopment of the virtual pipeline assets to commercialize otherwise stranded gas, or sales of production test gas elsewhere within the company’s portfolio, the company said.
Initial production will be compressed at the field and then trucked about 60 km to a delivery point to access the existing high-pressure gas infrastructure network.
First gas sales are expected during first-quarter 2023 and will be directed to the Australian domestic spot market responding to the predicted market shortfall and taking advantage of high prices currently available on the east coast.
Reid’s Dome gas is of pipeline quality and requires only dehydration to meet pipeline specifications.
State Gas has sourced compression and transportation equipment to enable sales of about 1 terajoule/day.
Stage 2 work is under way with survey work to refine the preferred pipeline route prior to seeking approvals.
Reid’s Dome was discovered in 1954 when there was no market for gas and no pipeline or other techniques available for transport.