Comet Ridge, Denison let FEED contract to advance Mahalo North development plan
Comet Ridge Ltd, Brisbane, and Denison Gas Ltd., Sydney, have contracted Verbrec Infrastructure Service Pty Ltd. for an engineering study for upgrade of Denison infrastructure to process gas from the Mahalo North coal seam gas project in Queensland, Australia.
Comet Ridge and Denison have been in discussions to transport gas from Mahalo North via the nearby Denison compression and dehydration plant and pipeline infrastructure.
Verbrec will undertake a front-end engineering design (FEED) study of process design, equipment selection, develop plant layout, project scope, schedule, and budget for the infrastructure upgrade to accommodate supply of 10 terajoules/day of gas production from Mahalo North Early Production Scheme (EPS) within Bowen basin permit ATP 2048 in central east Queensland.
Once FEED study results are finalized, Comet Ridge and Denison will finalize commercial arrangements under which Denison will compress, dehydrate, and transport Mahalo North gas production, enabling Comet Ridge to move the project quickly from recent appraisal and reserves certification activities, through development, and onto gas sales.
Concurrent with the Infrastructure FEED study, Comet Ridge is also progressing its internal planning of capital expenditure and approvals required for Mahalo North field development.