AUSTRALIA: State Gas has successfully dispatched its inaugural shipments of high-density natural gas (HDNG) using virtual pipeline trailers (VP).
These initial deliveries mark the beginning of an offtake agreement announced in April, which will see State Gas’s HDNG employed in the ongoing trials of hybrid mine-truck engine technology at a prominent coal mine in Central Queensland.
The successful outcomes from a fully funded exploration program, announced last week, indicate that additional gas production for HDNG is expected early next year, according to State Gas CEO Doug McAlpine.
“This will allow State Gas to meet increasing demand for HDNG,” McAlpine stated.
Over the coming weeks, HDNG volumes are set to increase progressively as gas production ramps up at State Gas’s HDNG facility.
This will coincide with the seamless integration of hybrid truck engines into the operational mine-truck fleet at the customer’s site.
The company’s provision of HDNG represents a bundled gas supply solution, offering significant value compared to raw natural gas sourced from traditional pipelines.
The ability to supply flexible quantities of natural gas to locations remote from conventional pipeline infrastructure positions State Gas’s HDNG at a sustainable premium to the spot price of raw pipeline gas.
Since the commissioning of the HDNG plant, State Gas has received unsolicited inquiries not only for HDNG supply but also for the broader application of its HDNG technology in various diesel substitution scenarios.
Richard Cottee, Executive Chairman of State Gas, highlighted the challenges faced in delivering this innovative solution in the coal seam gas (CSG) industry.
“The task of delivering innovation of this scale in the CSG industry has posed challenges in both time and cost.
“However, in the HDNG facility, the company has created an asset of substantial strategic and commercial values,” Cottee said.
Cottee emphasised the timeliness and environmental importance of this development.
“We believe supporting diesel substitution in the coal industry is the first of many potential large-scale applications of HDNG.
“In conjunction with the recently announced exploration grant funding, State Gas is now extremely well positioned to deliver improved returns to shareholders, by generating initial cash flow from its existing assets but, more importantly, through becoming a credible energy and technology provider,” said Cottee.
As the company continues to pioneer in the HDNG market, the company’s strategic initiatives and technological advancements promise to pave the way for significant environmental and economic benefits.
