Comet Ridge and Jemena have reached an agreement for a new gas pipeline connection from the Mahalo North Project into the domestic gas market.
As part of the memorandum of understanding (MOU) and a pre-FEED agreement, Jemena will immediately undertake a pre-FEED study of a high-pressure gas transmission pipeline of 73 km from the Mahalo North Gas Project to Jemena’s Queensland Gas Pipeline.
In November 2022, Comet Ridge announced the independent certification of natural gas for Mahalo North, after the pilot production test achieved a gas flow rate of 1.75 million cubic feet per day.
The company aims to move these reserves into production as soon as possible, by leveraging its partnership with Jemena to provide the infrastructure route to market.
Comet Ridge managing director Tor McCaul said the agreement with Jemena will coincide with the previously announced joint study with Denison Gas, which provides a different route to market for Mahalo North gas.
“Jemena’s gas pipeline would take a southerly rote direct into Jemena’s own QGP, which gives us direct access to both Gladstone and Wallumbilla markets,” McCaul said.
“This gas production would have a slightly later start date but would allow a larger volume of Comet Ridge gas into the domestic gas market, allowing our other projects, at Mahalo East and Mahalo Far East, to feed in sequentially.
“Jemena has the balance sheet, experience and expertise to be able to deliver this project quickly and efficiently, as it did with Senex on the Atlas development.”
Jemena managing director Frank Tudor said the agreement is a key step in providing regional Queensland with additional gas.
“Today’s announcement means we will be able to leverage our experience and understanding of regional Queensland to conduct a pre-FEED study with a view to constructing a 73km pipeline which is capable of delivering around 25 terajoules of gas per day to the domestic market,” Tudor said.
“It is also good news for local communities in regional Queensland who stand to benefit from an influx of jobs and local contracts throughout the planning, construction, and commissioning of the proposed pipeline and broader development as part of Comet Ridge’s Mahalo North Project.”
Subscribe to The Australian Pipeliner for the latest project and industry news.