Comet Ridge, Denison to boost gas infrastructure in east Australia
ASX-listed gas company Comet Ridge and Denison will undertake an engineering study for an upgrade of the latter’s infrastructure to process gas from the Mahalo North project in Queensland, Comet Ridge said on January 30.
The parties have engaged engineering contractor, Verbrec, to undertake the jointly funded FEED study. The study will prepare the design, project schedule and budget for the upgrade of the Denison infrastructure to accommodate up to 10 terajoules/day of gas production from Comet Ridge’s 100% held Mahalo North project.
Once the results of the FEED study are completed, the parties intend to finalise commercial arrangements for the transportation of Mahalo North early gas production via the Denison infrastructure, Comet Ridge said.
“Denison is pleased to be working with Comet Ridge and assisting them in getting their gas to market more quickly,” Denison CEO, Benson Wong, said. “This is an excellent example of two companies working together to help satisfy the needs of the east coast energy market. In addition to expanding our processing and transportation capacity in our established, integrated processing facilities, Denison is also focused on expanding our supply of gas to market from our conventional gas reserves and coal seam gas resources.”
Since April 2019, Denison has operated 14 gas fields, two gas processing facilities, four additional gas compression facilities and a 200-km gas pipeline network connected to the Jemena-operated Queensland Gas Pipeline.
Concurrent with the infrastructure FEED study, Comet Ridge is also progressing with its internal planning of the capital expenditure requirements and approvals required for the Mahalo North field development.
Comet Ridge's Mahalo gas hub project comprises Mahalo gas project, Mahalo North, Mahalo East and Mahalo Far East.