Comet Ridge Signs Oz High Density CNG MoU

Sydney-listed Comet Ridge has signed a memorandum of understanding with Mine Energy Solutions (MES) and IntelliGas Group to assess the feasibility of using Mahalo North pilot gas in Queensland as high density compressed natural gas (HDCNG), it said on October 6. The HDCNG could be used to displace diesel fuel in vehicles and for the generation of behind the fence power in nearby coal mines, Comet said.

“Such an option could provide flexibility for initial gas production and provide an early revenue stream and environmental benefits for gas that would otherwise be flared. Comet Ridge would see a significantly reduced facility capex requirement for this early gas opportunity,” it said.

MES manufactures HDCNG as a fuel to displace diesel in a dual fuel mix for mobile mining equipment using patented specialist gas technologies in these applications. MES is seeking guaranteed long-term supply availability of methane to offer to its prospective customers in the southern Bowen basin as an integral part of its contracts for service and materials, Comet Ridge said.

IntelliGas specialises in gas technology including HDCNG storage and refuelling, dual fuel engine systems, gas compression systems, gas transportation and an ultra-low pressure well gas lift system with numerous patents applicable across the range of technologies.

Meanwhile, Comet Ridge said it had been issued petroleum survey licence 2048 for a two-year period. This area covers a large part of the Mahalo gas hub area, including the export route to the south where there are two existing large diameter pipelines running into Gladstone (Jemena Queensland gas pipeline for domestic gas and Santos GLNG pipeline for export gas). Mahalo North was formally awarded as authority to prospect (ATP) 2048 in April this year. 

Last month, the company was selected by the Queensland government as preferred tenderer for two additional gas blocks in central Queensland.