Comet Ridge pens gas supply pact with CleanCo Queensland

Australian gas producer Comet Ridge has executed its first gas sales agreement with CleanCo Queensland, a government-owned energy retailer, Comet Ridge announced on September 19. The agreement is for the supply of 3 petajoules/year of natural gas from Comet Ridge's Mahalo gas hub in central Queensland.

The contract is for a seven-year period, with CleanCo having the option to reduce this to five years, and both parties having the option to agree to extend for up to a further five years. The supply is expected during a 12-month window, starting July 1, 2025. 

Comet Ridge managing director, Tor McCaul, said the company was pleased to be working with CleanCo to bring a new source of energy to Queensland that would make a valuable contribution to energy security.

"We know that East Coast Australia needs more gas for decades to support consumers and jobs in vital industries, as well as to partner with renewables as we transition to Net Zero," McCaul said. "Comet Ridge is very pleased to be working with CleanCo to bring a new source of energy to Queensland that will make a valuable contribution to energy security, and to enable CleanCo to manage its overall energy mix to minimise its carbon emissions."

McCaul said Comet Ridge would continue to develop its Mahalo gas hub portfolio, which held 406 petajoules of 2P and 2C reserves and resources.

"The Mahalo Gas Hub has the potential to be a multi-decade, low-cost, high production project which has great access to infrastructure and potential for significant resource upside. We are at the beginning of an opportunity to make a valuable contribution to East Coast Australia’s energy security for many years to come," he said.

Comet Ridge said it has had a strong interest in Mahalo hub gas and is in discussions with several parties regarding further gas supply contracts. Comet Ridge's Mahalo gas hub project comprises the Mahalo gas project, Mahalo North, Mahalo East and Mahalo Far East.