Comet Ridge Ltd (ASX:COI, OTC:COMRF) has signed a non-binding memorandum of understanding with Highview Power Pty Ltd for the potential supply of natural gas from its Mahalo Gas Hub to a major energy storage project near Gladstone, Queensland.
Under the proposed gas sales agreement, Comet Ridge would supply 3.6 petajoules per year, equivalent to 10 terajoules per day, for a minimum of five years to Highview’s planned Central Queensland Energy Storage Project (CQESP).
The CQESP is planned for the Aldoga State Development Area at East End, near Gladstone, and will be developed in two phases.
The first phase is expected to include a 400-megawatt, four-hour battery energy storage system, two nominal 200-megawatt open-cycle gas turbines, a 370-megavolt ampere synchronous condenser and supporting transmission infrastructure.
A second phase would add a 200-megawatt, 12-hour liquid air energy storage system.
Comet Ridge managing director Tor McCaul said the proposed arrangement highlighted the role of locally produced gas in supporting reliable energy infrastructure.
“Comet Ridge is pleased to be in a position to develop a domestic gas supply solution for this innovative project,” he said.
“This relationship with Highview underlines the importance of local gas development and supply to support the energy transition.”
Mahalo Gas Hub well positioned
Highview’s project is expected to be located on the Queensland Gas Pipeline, which connects the Wallumbilla Gas Hub with industrial customers in Gladstone and Rockhampton.
The pipeline is also expected to provide the primary link between Comet Ridge’s Mahalo Gas Hub and the East Coast gas market, making Highview a logical potential domestic customer.
Comet Ridge plans to progressively develop the Mahalo Gas Project and Mahalo North, with additional supply potential from its wholly owned Mahalo East, Mahalo Far East and Mahalo Far East Extension permits.
About Comet Ridge
Comet Ridge is an Australian energy company focused on developing natural gas resources for the east coast market.
Its flagship Mahalo Gas Hub near Gladstone contains low-cost, sales-quality gas reserves with very low carbon dioxide content. The company also holds exploration assets in Queensland’s Galilee Basin and an interest in a New South Wales permit alongside Santos.