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Highlights
- Strategic Gas Expansion: Comet Ridge (COI) is advancing key gas assets, including the Mahalo Gas Project, alongside infrastructure improvements to meet rising demand.
- Infrastructure Support Boosts Growth: APA Group (APA) plans a 24% capacity upgrade in the East Coast Gas Grid, strengthening the backbone for new supply sources.
- Strong Partnerships for Market Positioning: Comet Ridge’s collaboration with Santos (STO) and other industry players bolsters its potential in the energy market.
Australia’s east coast gas supply remains constrained due to aging fields and underinvestment in exploration, driving a strong push for new developments. Comet Ridge (ASX:COI) is making significant strides in this landscape, focusing on strategic projects that align with increasing demand and supportive infrastructure expansion.
With natural gas prices surpassing $12 per gigajoule, the market conditions favor companies progressing toward production. Comet Ridge, with its near-term gas projects, is positioned to contribute to the evolving energy supply chain while leveraging key industry partnerships.
A Key Near-Term Development
One of Comet Ridge’s most notable projects is the Mahalo Gas Project, a joint venture with Santos (ASX:STO). The project holds proven and probable (2P) reserves of 266 petajoules, positioning it among the select few developments capable of supplying the east coast gas network in the near future.
Santos has entered the Front End Engineering Design (FEED) phase, a crucial step leading to a final investment decision, potentially by early 2026. Additionally, the project has an agreement with CleanCo for gas supply and discussions with Jemena for pipeline connectivity to the Queensland Gas Pipeline. These developments strengthen Mahalo’s commercial viability and enhance its integration into the broader gas network.
Expanding Assets
Beyond the Mahalo Gas Project, Comet Ridge has additional assets that add to its growth potential:
- Mahalo North: Positioned along planned pipeline routes, this project holds significant reserves and is advancing through the necessary permitting processes for future development.
- Mahalo East: Supported by a $5 million government grant, the Mahalo East project is progressing toward flow testing, with expectations of transitioning resources into proven reserves soon.
These assets reinforce Comet Ridge’s position as a key player in the evolving gas market.
Infrastructure Expansion Supports Growth
The development of new gas assets aligns with APA Group’s (ASX:APA) planned expansion of the East Coast Gas Grid. The company aims to increase capacity by 24%, ensuring a more robust infrastructure network capable of accommodating new supply sources.
As demand continues to rise, these infrastructure upgrades create a more supportive environment for Comet Ridge’s projects, potentially accelerating their impact on the market.
Financial Position and Future Outlook
A notable financial milestone for Comet Ridge is its upcoming $10 million loan repayment to Pure Asset Management in September. Successfully addressing this obligation could unlock further growth opportunities and reinforce market confidence in the company’s development strategy.
With a strong portfolio of gas assets, supportive infrastructure developments, and key industry collaborations, Comet Ridge continues to strengthen its position in the east coast gas market. As it progresses through critical project milestones, the company remains a pivotal player in addressing Australia’s growing energy needs.
