GAS FROM the Galilee basin permits operated by Comet Ridge could be transported to Australia’s east coast gas markets under a non-binding memorandum of understanding (MOU) signed with APA Group, the company has announced.
The MOU provides a framework of cooperation between the parties to negotiate the commercial terms of a gas transportation agreement between the two groups.
Under that agreement, APA would build, own and operate new gas pipelines and associated gas gathering and production infrastructure connecting Comet Ridge’s Galilee basin gas projects to APA’s existing Queensland gas pipeline network.
Comet Ridge managing director Tor McCaul said this could open Comet Ridge’s reach to a network with access to all the principal east coast markets, including Gladstone, Brisbane, Mt Isa, Ballera, Moomba, Sydney and Melbourne.
“Given the size of Comet Ridge’s certified contingent gas resources in the Galilee basin, particularly the Albany sandstone gas project, there is significant potential for this gas to be transported to the southeast to satisfy the demand from LNG and industrial customers,” he said.
Comet Ridge has a large gas contingent resource volume in the eastern Galilee basin, including sole ownership of the ATP 743 and ATP 744 permits – with the company soon to also assume sole ownership of ATP 1015.