State Gas Limited 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.