State Gas Limited has outlined its exposure to climate change and health and safety risks, alongside its exploration and development activities. The company is aware of the transition and physical risks associated with climate change, including potential regulatory changes and extreme weather events. It also acknowledges the risk of new energy technologies superseding its current products.
Material actions and disclosures
The company aims to maintain insurance coverage consistent with industry practice, though it notes that certain risks, such as environmental protection, are not generally insurable on acceptable terms. State Gas Limited has also disclosed its exploration and evaluation costs, which are capitalised based on the intention to commence commercial production in the future.
State Gas Limited has a high degree of confidence in the commerciality of the Rolleston West Project, supported by independent assessments. The company has also advanced negotiations with a coal mine owner for a multi-year HDNG supply contract and secured conditional support from the Queensland Government for the project’s implementation.
Forward commitments
State Gas Limited aims to continue engaging with domestic and international parties interested in gas expansion opportunities in Queensland, while supporting these parties in their commercial assessments of the Rolleston West Project.
State Gas Limited’s commitment to the HDNG supply contract and the Queensland Government’s conditional support remain contingent on several factors, including the final technical sign-off on the supply chain technology and agreement on an appropriate funding model.
State Gas Limited’s disclosures and risk management strategies are detailed in its annual report, which has been audited by BDO Audit Pty Ltd.