Highlights

  • Comet Ridge targets a mid-2027 investment decision for Mahalo Stage 1A, with first gas still targeted for 2029.
  • The company completed its purchase of Santos’s remaining Mahalo interest in August, taking ownership of the hub to 100%.
  • Comet Ridge considers Mahalo eligible as additional gas under proposed reservation rules, although the regulatory outcome remains unsettled.
  • The developer continues negotiating pipeline terms and progressing CleanCo supply conditions while seeking financing and an outstanding petroleum lease.

Full ownership has simplified Mahalo’s structure, but Comet Ridge Limited (ASX:COI) still needs financing, approvals and commercial agreements before construction can proceed. The Queensland gas developer targets a final investment decision for Stage 1A in mid-2027. Proposed federal gas reservation rules now form another part of that timetable, with the company’s preferred treatment not yet a settled regulatory outcome.

Ownership Consolidates the Development Plan

Comet Ridge became sole owner of the 1,847-square-kilometre Mahalo Gas Hub after completing the purchase of Santos’s 42.86% interest on 21 August 2026. The company plans a staged development rather than a single expansion to full capacity.

Stage 1A envisages approximately 50 well sets and about 50 terajoules a day of compression capacity. Subsequent Stages 1B and 1C would lift capacity to 70 TJ/d, while a later Stage 2 could provide pipeline capacity of up to 100 TJ/d, depending on demand.

The project holds 361 petajoules of 2P reserves, 725 PJ of 3P reserves and 515 PJ of 3C contingent resources. Permits PL 1082 and PL 1083 contain 74% of the 2P position.

Policy and Contracts Remain Open

Exposure-draft legislation for the Domestic Gas Reservation Scheme was introduced on 14 October 2026. A Senate committee report is due on 11 November, with drafted mechanisms intended to begin from 1 January in 2027 and 2028.

Comet Ridge’s position, supported by legal advice, is that Mahalo would qualify as additional gas outside reservation obligations. The Bill’s final wording, commencement provisions and ministerial discretion remain unresolved.

A gas sales agreement with CleanCo covers 21 to 25 PJ over seven years, with conditions precedent still progressing. Using the upper contracted volume, about 336 PJ of the 2P reserve base remains uncommitted. No binding agreement has been reached with a Gladstone LNG participant.

Funding and Infrastructure Precede First Gas

Front-end engineering design is complete for an approximately 80-kilometre pipeline. Commercial terms for a Jemena build-own-operate arrangement remain under negotiation, and petroleum lease PLA 1128 has not been granted.

During the June 2026 quarter, Comet Ridge raised $40 million through a placement and $875,750 through a share purchase plan. The proceeds support acquisition costs, progress towards an investment decision and working capital.

The Stage 1A concept also includes reverse-osmosis treatment of approximately 1.5 megalitres of produced water a day. Development financing and binding commercial arrangements are still outstanding.

First gas in 2029 remains a target rather than a production forecast. The Senate report, lease approval, additional binding gas sales and pipeline terms are the identified steps ahead of the mid-2027 investment decision.