Comet Ridge pens MoU with Orica for future gas supplies
Sydney-listed gas company Comet Ridge on May 16 announced the signing of a memorandum of understanding (MoU) with Orica to advance commercial arrangements for a long-term gas offtake as part of the Mahalo North (ATP 2048) gas project in Queensland.
This is a significant development for Comet Ridge, as it secures a major customer for its gas production from Mahalo North. Orica manufactures ammonia-related products for the mining and infrastructure industries and has been a reliable buyer of natural gas in Queensland and New South Wales for its facilities at Yarwun (near Gladstone) and Kooragang Island (near Newcastle).
The MoU positions Orica to support Comet Ridge in gas production from Mahalo North initially for the Yarwun facility, with the potential for expanded supply to Orica's manufacturing operations across Australia as Comet Ridge increases production across its Mahalo Gas Hub permits.
Under the MoU, both parties will commit in the coming months to progress an initial gas sales agreement and development funding structures through term sheet and binding documentation phases.
According to Comet Ridge, a crucial aspect of developing Mahalo North, as well as meeting the conditions of the commercial arrangements with Orica, is finalising infrastructure access to connect Mahalo North to the Queensland Gas Pipeline (QGP).
Comet Ridge's recently announced MoU with Jemena provides one option for a pipeline connection into the QGP, as well as enabling gas haulage arrangements via the QGP into Gladstone.
Tor McCaul, managing director of Comet Ridge, said the proximity of Orica's Yarwun project to the Mahalo Gas Hub and its ongoing need for natural gas in manufacturing make it an ideal foundation customer for Comet Ridge, alongside CleanCo.
Comet Ridge's Mahalo gas hub project comprises the Mahalo gas project, Mahalo North, Mahalo East and Mahalo Far East.