Comet Ridge and Santos are closing in on a final investment decision for the Mahalo Joint Venture Gas Project in Queensland’s Bowen Basin.
Through the joint venture, the two companies are working to commence upstream front end engineering design (FEED) for the project, which is a precursor to a final investment decision.
It is the latest in a series of milestones, including:
- completion of the select phase of all upstream components of the project, including gas production
- the selection of key gas plant, compression and water handling facilities
- identification of gas field power requirements.
In addition to upstream activities the joint venture is also considering an offer from Jemena to perform a FEED scope of work for the Mahalo Gas Hub Pipeline, which will connect the project’s infrastructure to nearby gas domestic and export pipelines.
This is expected to enable the transportation of 80 terajoules of gas per day to end user markets. The offer is currently under evaluation.
When operational, the Mahalo Project is expected to provide a meaningful gas supply to the east coast market.
“Importantly, demand for Queensland gas from both export and domestic markets remains very strong, positioning the Mahalo joint venture project as an important new source of supply to the market,” Comet Ridge said.
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