Comet Ridge has boosted its stake in the Mahalo gas project after it completed the previously announced deal with Australia Pacific LNG.
With this move, Comet increased its interest from 40 percent to 70 percent in the gas project located near Gladstone, Queensland, where the ConocoPhillips-operated 9 mtpa APLNG export facility sits.
ConocoPhillips has a 47.5 percent share in the APLNG project and operates the 9 mtpa LNG export facility on Curtis Island near Gladstone, while Origin owns a 22.5 percent stake and is the upstream operator. China’s Sinopec owns a 25 percent share in APLNG as well.
Comet Ridge previously said it would spend about A$20 million ($13.7 million) in the stake purchase.
The firm said it has completed $12 million upfront consideration to APLNG, funded via a $13.15 million loan from Australian LNG player Santos.
Santos is the remaining Mahalo joint venture participant with a 30 percent interest.
“The Mahalo gas project is a key opportunity to bring an additional source of gas to the Queensland market at a time when global and Australian energy markets are in need of new
sources of reliable gas supply for retail consumers, manufacturing and gas fired power generation,” Tor McCaul, Comet Ridge managing director, said.
“Comet Ridge has significantly increased its share of Mahalo gas reserves at a critical time. We note very strong interest from gas users for our equity share of Mahalo gas and we can now look to the future with Santos to take Mahalo through development and move into producing reliable, competitive gas into a tight east coast market,” McCaul said.
