How Comet Ridge’s Mahalo Gas Hub Is Shaping Australia’s East Coast Energy Future
Comet Ridge has made significant progress in its Mahalo Gas Hub development, advancing engineering design and securing independent certification of substantial gas reserves. The company is moving closer to a Final Investment Decision amid ongoing regulatory and commercial negotiations.
- Upstream and pipeline FEED progressing with Santos and Jemena
- Mahalo East gas reserves independently certified at 51.8 PJ (2P) and 118.5 PJ (3P)
- Environmental approval process for Mahalo North nearing final decision
- Active negotiations on Gas Sales Agreements to support project financing
- Cash position of $10.6 million with ongoing funding discussions
Engineering Design Advances
Comet Ridge Limited has reported steady progress in the Front End Engineering Design (FEED) phase for its Mahalo Joint Venture gas project in Queensland's Bowen Basin. Santos, the development operator, continues to refine the upstream facilities design, including production wells, gas compression, and water handling systems. Concurrently, Jemena is advancing the pipeline FEED for a new 10-inch diameter pipeline that will connect the gas hub to existing transmission infrastructure, with geotechnical and ecological studies largely complete.
Certified Gas Reserves Bolster Project Viability
Early in the quarter, Comet Ridge secured independent certification of significant gas reserves at its 100% owned Mahalo East project, with 51.8 petajoules (PJ) of 2P reserves and 118.5 PJ of 3P reserves. This certification marks a 67% increase over prior contingent resources and adds materially to the company’s overall gas reserve portfolio. The certification was supported by recent drilling and production testing, which provided robust data on permeability and gas flow, underpinning confidence in the project's development potential.
Environmental Approvals and Regulatory Progress
Comet Ridge is also advancing environmental approvals for the Mahalo North project, with the Queensland state environmental approval already secured. The company has submitted comprehensive documentation to the federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) and anticipates a final decision by December. This approval is critical for progressing the award of petroleum leases and moving towards development.
Commercial and Financial Developments
On the commercial front, Comet Ridge is actively negotiating Gas Sales Agreements (GSAs) with industrial users, power generators, and gas retailers to underpin the project’s revenue stream. These agreements are essential for securing financing for the Mahalo JV Gas Project’s development capital expenditure. The company ended the quarter with $10.6 million in cash and continues to engage with debt providers, encouraged by progress in funding discussions. A secured loan facility of $9.5 million from Pure Asset Management remains in place, with potential additional cash inflows from warrant exercises.
Looking Ahead to Final Investment Decision
With FEED activities on track and regulatory approvals advancing, Comet Ridge aims to reach a Final Investment Decision (FID) in early 2026. The FID will mark a pivotal moment, enabling the transition from project definition to development. The company’s strategy to leverage its Mahalo Gas Hub assets positions it to supply much-needed natural gas to Australia’s east coast market, which faces structural supply challenges amid declining offshore production and sustained demand.
Bottom Line?
As Comet Ridge nears its Final Investment Decision, the Mahalo Gas Hub could become a key new source of east coast gas supply.
Questions in the middle?
- Will Comet Ridge secure final federal environmental approval for Mahalo North in December?
- How will Gas Sales Agreement negotiations impact the timing and scale of project financing?
- What are the implications of the ongoing FEED outcomes for project cost and schedule?