Comet Ridge Limited has signed a Memorandum of Understanding (MOU) with Orica Australia Pty Ltd to advance commercial arrangements for long-term gas offtake as part of the Mahalo North (ATP 2048) gas project.
According to Comet Ridge, Orica is the world’s largest supplier of ammonia-related products to the mining and infrastructure industries, and it has been a long-term and dependable consumer of natural gas in Queensland and NSW for its facilities at Yarwun and Kooragang Island.
The MOU positions Orica to assist Comet Ridge in gas production from Mahalo North in the short term to feed Orica’s Yarwun complex. As Comet Ridge grows production across all of its Mahalo Gas Hub licences, the deal anticipates increased supplies to service Orica’s manufacturing activities in Australia over time.
Under the MOU, the parties will commit to moving an initial gas sales agreement and development funding mechanisms through the term sheet and binding documentation processes in the following months. The completion of infrastructural access to connect Mahalo North to the Queensland Gas Pipeline (QGP) will be a critical component in the development of Mahalo North. The newly announced MOU between Comet Ridge and Jemena will give one option for a pipeline connection into the QGP, as well as gas transportation arrangements via the QGP into Gladstone.
“Following our very successful production test from Mahalo North last year, followed by 2P and 3P Gas Reserves certification in November, we have had a lot of inbound interest for gas sales from our Mahalo Hub projects. We are very pleased to be forming this long-term relationship with a blue-chip gas buyer, with a strong gas market reputation, in Orica. Orica’s Yarwun project is close to the Mahalo Gas Hub and will operate well into the future, given the enormous need for natural gas for manufacturing for the next several decades. We welcome Orica alongside CleanCo, as high-quality foundation customers for Comet Ridge.” Comet Ridge Managing Director Tor McCaul said.
