How a few tiny insects forced Queensland gas project onto back-burner
Richard Cottee’s State Gas has been hit with a delay to its crucial Reid’s Dome gas project after a compressor imported from Texas was stopped by Australian Quarantine and shipped offshore to be fumigated.
State Gas executive chair Richard Cottee.
But the company, which operates gas fields in central Queensland, believes there may be an upside.
“We are in the process of understanding when we will regain custody of the compressor, but at this point, we expect the compressor to be landed back in Brisbane by mid-May.
“Our inability to commission the compressor will have a consequential delay to the original compressed natural gas project timetable.
“At this point, we expect the CNG project to be producing gas by July 2023.
“While frustrating, given the flow rates being experienced this should allow State Gas to relocate the CNG project to Rougemont. This should result in considerable cost savings on the project. ”
State Gas said the Queensland Government had demonstrated a desire to see new gas production come on quickly be approving changes to its environmental authority over its petroleum lease that would allow the company to start construction and commissioning of the CNG project.
Testing from the Rougemont well has exceeded 457,000 square feet a day and was “unquestionably economic”, according to Cottee.
The top coals of the seam to be accessed were still underwater and the company doesn’t expect they will be exposed until the end of this month. At one point the coal seam was 70 metres under water and the company has been drawing down that level by three to four metres a day.
“It is reasonable to expect improved gas production once the coal seams are exposed,” Cottee said.
