State Gas (ASX:GAS) is looking to begin plant commissioning activities in mid-January 2024 as construction of its compressed natural gas (CNG) facility in Queensland nears completion.

The $42.48 million market capitalisation company says the facility is expected to support the processing and initial sale of production testing gas from its Rolleston West Project.

State Gas says construction crews have remobilised to the site and have experienced ‘significantly’ improved productivity due to more favourable weather conditions.

Further, an all-weather access road is now complete, and prefabricated foundations are now being set in place on the CNG facility pad, with all ‘major’ pieces of equipment on-site and being progressively installed.

Meanwhile, trenching and pipework are also complete, with the gathering system connecting the Rougemont 2-3 dual lateral well to the CNG facility inlet point.

The company notes surface rehabilitation of the pipeline corridor is in progress.

State Gas expects construction and commissioning work to be able to continue efficiently, even if the area experiences localised rain. The completion of the facility is scheduled for January 2024.

State Gas is a Queensland-based gas explorer and developer with ‘highly prospective’ gas exploration assets sitting in the southern Bowen Basin.

The company’s wholly owned Reid’s Dome and Rolleston-West gas projects cover a combined land package of 1,595km-square and sit south of the township of Rolleston, about 50km and 30km, respectively, from the Queensland Gas Pipeline.

As of 30 September 2023, State Gas had $4.885 million cash and cash equivalents at hand, according to its latest quarterly report.

Images: State Gas