Australia's Comet Ridge, APA Group Sign Gas Transportation MoU
Comet Ridge Limited has entered into a non-binding memorandum of understanding (MOU) with APA Group (APA) to work towards the transportation of gas from Comet Ridge’s Galilee Basin permits to Australia's east coast gas markets.
“The MoU provides a framework of cooperation between the parties to negotiate the commercial terms of a gas transportation agreement under which 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 said Wednesday.
Comet Ridge has large acreage position in the eastern part of the Galilee Basin which is prospective for both sandstone gas and coal seam gas development.
Comet Ridge Managing Director, Tor McCaul, said given the size of company’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.
“This MOU with APA facilitates the transportation requirements of our Galilee projects with a group that owns and operates an extensive network of pipelines on the east coast of Australia with access to all the principal east coast markets including Gladstone, Brisbane, Mt Isa, Ballera, Moomba, Sydney and Melbourne,” McCaul said.
APA Group said any investment will be subject to the satisfaction of a number of conditions, including gas resource certification, gas supply and transportation agreements and final board approvals.
APA’s Managing Director, Mick McCormack said “The interconnected nature of APA’s East Coast Grid enables potential new producers such as Comet Ridge, to explore opportunities to market their gas in multiple domestic and international gas markets. Our infrastructure continues to connect more gas resources with more gas markets to proactively meet the needs of our customers.”