Comet Ridge Limited has obtained federal environmental approval for its Mahalo North natural gas project, paving the way for expanded development in Queensland’s Bowen Basin. This milestone complements recent ownership consolidation and state approvals, positioning the company to boost east coast gas supply.
- Federal EPBC approval granted for Mahalo North natural gas development
- Approval allows up to 68 coal seam gas wells and associated infrastructure
- Follows Queensland Environmental Authority approval in August 2024
- Comet Ridge now holds full ownership of adjacent Mahalo Gas Project
- Project critical to east coast Australian gas supply amid growing demand
Federal Green Light for Mahalo North
Comet Ridge Limited (ASX, COI) has secured a significant regulatory milestone with the receipt of approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) for its Mahalo North natural gas development in Queensland’s Bowen Basin. This federal endorsement authorizes the company to construct, operate, and eventually decommission up to 68 coal seam gas wells along with the necessary gas facilities and gathering lines across the 141 square kilometre PLA 1128 area.
Building on State and Ownership Foundations
The EPBC approval complements the Queensland Government’s Environmental Authority granted in August 2024, marking a dual-layered environmental clearance that clears a path for project advancement. This comes on the heels of Comet Ridge’s recent acquisition of full ownership of the adjacent Mahalo Gas Project from Santos QNT Pty Ltd, consolidating control over a strategically important gas hub near Gladstone.
Strategic Importance Amid East Coast Gas Supply Challenges
With east coast Australia facing tightening gas supply dynamics, Comet Ridge’s Mahalo North and Mahalo Gas Project developments are positioned to play a critical role in alleviating market pressures. The company’s Managing Director, Tor McCaul, highlighted the momentum gained in recent weeks, noting the successful completion of NAIF’s Strategic Assessment Phase and the promising outlook for 2026 as the projects move into more active stages.
Environmental and Regulatory Rigour
The approval process involved detailed assessments by the Department of Climate Change, Energy, the Environment and Water, alongside the Independent Expert Scientific Committee on Unconventional Gas Development. This thorough scrutiny underscores the project’s compliance with stringent environmental standards, a crucial factor given the sensitive nature of coal seam gas extraction and its ecological footprint.
Looking Ahead
While the announcement does not specify development timelines or capital expenditure, the dual environmental approvals and consolidated ownership provide a solid foundation for Comet Ridge to advance its gas production ambitions. The company’s broader portfolio, including other Mahalo permits, offers further upside potential as domestic and international demand for cleaner energy sources continues to rise.
Bottom Line?
Comet Ridge’s EPBC approval for Mahalo North marks a pivotal step toward expanding Queensland’s gas supply, with market watchers keen to see how swiftly development progresses.
Questions in the middle?
- What are the expected timelines and capital requirements for Mahalo North’s development?
- How will Comet Ridge manage environmental and community concerns as drilling advances?
- What impact will Mahalo North’s gas output have on east coast gas prices and supply security?