Comet Ridge and LogiCamms have signed a Memorandum of Understanding (MoU) to work towards a 65 km pipeline connection option from Mahalo North.
The MoU will consider an export solution by building a new pipeline that would transport Comet Ridge’s 100 per cent interest in Mahalo North and accommodate its 40 per cent share in Mahalo JV gas production.
Technical discussions with LogiCamms around the export of gas from both Mahalo North and Mahalo have now been formalised into a non-binding MoU to allow further data to be shared.
Both parties now intend to examine the technical and economic aspects of a 6–8 inch (152–203 mm) diameter pipeline solution for Mahalo North.
The solution would need to transport Comet Ridge net gas production to larger transmission pipelines to the south across approximately 65 to 70 km in the range of 20 to 50 TJ/d.
Comet Ridge Managing Director Tor McCaul said the opportunity to expand the relationship with LogiCamms was welcome.
“Their team have provided Comet Ridge solid pipeline design and technical advice over the past few years, and Comet Ridge views LogiCamms as a practical, fit-for-purpose solution provider ideal for identifying the lowest cost option for moving gas to market,” said Mr McCaul.
LogiCamms CEO Chris O’Neill said the project was an ideal fit for the company’s capabilities as its local experience would be well-suited to helping develop the promising Mahalo and Mahalo North areas.
Under the MoU, work will also be carried out in order to consider and gain an understanding of debt funding options for both the upstream portion and pipeline portion of the project.
During this time, Comet Ridge will continue to work with Denison Gas and the Mahalo JV on the transportation of Mahalo North gas to the market.
For more information visit the Comet Ridge website.
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