State Gas (ASX:GAS) Maps 30 TJ Daily Gas Plan as Rapid Refuel Moves Towards 2027

Aditi Sarkar

06 November 2026 02:53 PM AEDT

State Gas (ASX:GAS) Maps 30 TJ Daily Gas Plan as Rapid Refuel Moves Towards 2027

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Highlights

State Gas completed a Rolleston West concept study for an initial 10 TJ/day project, expandable to 30 TJ/day.
Its Rapid Refuel prototype progressed towards fabrication for an envisaged twelve-truck foundation customer installation.
A $4.1 million Research and Development tax refund funded repayment of bridging and director working-capital loans.
The company commenced pre-FEED planning for a proposed connection to the Queensland Gas Pipeline.

State Gas Limited (ASX:GAS) is pursuing two complementary routes to commercial gas sales in Queensland: a staged pipeline development at Rolleston West and a compressed Natural Gas solution for industrial vehicle fleets. Its September 2026 quarter brought a completed project concept study, further work on a foundation customer programme and repayment of outstanding short-term loans, setting separate development timetables for the two businesses.

A 30 TJ/Day Development Framework

The Rolleston West concept study assessed a first-stage production rate of 10 terajoules per day, with an engineering pathway to 30 terajoules per day. It included a Class 5 cost estimate and considered lower-capital operating configurations. The company is assessing a roughly 37-kilometre connection to the Queensland Gas Pipeline near the Rolleston compression station. Pre-front-end engineering and design work, value engineering and environmental planning are intended to inform the next stages of evaluation. Rolleston West has independently certified proved and probable gas reserves of 30.2 petajoules, reported in November 2025. A reserve estimate is not equivalent to current production or a sanctioned project.

Rapid Refuel Targets a Mine Fleet

In parallel, State Gas is developing its proprietary high-density natural gas process and Rapid Refuel logistics system. The proposed first deployment involves twelve haul trucks at a Queensland coal mine, where natural gas would replace part of diesel consumption after vehicle conversion. Prototype fabrication and testing are part of the near-term programme. The foundation customer must still approve the solution, while the Queensland Treasury is examining potential support through its Low Emission Investment Program. The proposed first gas Supply and Cash Flow timetable is the second calendar quarter of 2027, contingent on those decisions and implementation milestones.

Tax Refund Reshapes Working Capital

During July, the company received an approximately AUD 4.1 million research and development tax refund for the financial year ended June 2024. It used the proceeds to retire its research and development bridging Facility and outstanding director working-capital loans. State Gas reported about AUD 0.3 million in cash at 30 September 2026. Its development plans therefore also include obtaining additional funding and continuing conversations with prospective Capital providers and Rolleston West participants. Management is evaluating potential offtake and co-investment structures rather than presenting a completed financing arrangement.

Upcoming Work Connects Both Strategies

The December quarter priorities include completion and testing of the Rapid Refuel prototype, further engagement with the foundation customer and progression of the Queensland Treasury funding review. At Rolleston West, engineering work will focus on the pipeline tie-in, lower-cost project Options and preparations supporting a petroleum Lease application. The company has indicated first pipeline gas as a longer-term target, rather than a current operating achievement.

Outlook: The Next Milestones

State Gas is working towards potential Rapid Refuel sales in 2027 and progressing the Rolleston West project design. Both pathways remain subject to customer decisions, funding, approvals and development work.

State Gas shares traded at AUD 0.007 on 6 November 2026, up 16.67%; intraday high AUD 0.007, low AUD 0.007, Volume 300,000 shares and Market Capitalisation approximately AUD 3.93 million.

FAQs

Q: What is the planned first-stage capacity at Rolleston West?

A: The concept study considers 10 TJ/day initially, with a design pathway to 30 TJ/day.

Q: When could Rapid Refuel first generate cash flow?

A: The company targets the second quarter of calendar 2027, subject to customer and funding approvals.

Q: How much was its research and development refund?

A: State Gas received approximately AUD 4.1 million in July 2026.

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