Comet Ridge Ltd., Brisbane, has executed a 7-year deal to supply natural gas to CleanCo Queensland Ltd., subject to approval from the Queensland Government.
The natural gas will be produced from the Mahalo Gas Hub in Central Queensland, Australia, where CleanCo will offtake 3 petajoules/year, as agreed in Comet Ridge’s inaugural gas sales agreement for the hub. Gas is to be supplied to CleanCo’s low emission Swanbank E power station.
The Mahalo Gas Hub comprises the Mahalo Gas Project in the Dension Trough, about 240 km west of Gladstone in the southern Bowen basin, and the permits to the north-west and north-east. The area has the potential to be a major east coast gas production hub with commercial gas rates demonstrated, gas reserves independently certified, and close proximity to infrastructure and major Gladstone domestic and export LNG markets, according to Comet Ridge.
As part of the deal, CleanCo has the option to increase the volume to 3.6 petajoules/year prior to Comet Ridge making a positive final investment decision (FID) on the project. CleanCo holds the option to reduce the deal to a 5-year period, with both parties holding the option to agree to extend for up to a further 5 years.
Natural gas supply is expected to begin between July 1 and June 30, 2026, which will allow Comet Ridge flexibility ahead of FID on the Mahalo Gas Hub projects, which are estimated to hold 406 petajoules of 2P and 2C reserves and resources.
Comet Ridge continues marketing efforts for further contracts.