Comet Ridge (ASX:COI) Outlines Staged Development Plan for 100%-Owned Mahalo Gas Hub

Aditi Sarkar

27 October 2026 07:36 PM AEDT

Comet Ridge (ASX:COI) Outlines Staged Development Plan for 100%-Owned Mahalo Gas Hub

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Highlights

Comet Ridge now holds 100% of the Mahalo Gas Hub after acquiring Santos' 42.86% interest.
Hub holds 361 PJ of 2P Reserves and 725 PJ of 3P Reserves.
Final investment decision targeted for mid-2027, with first gas in 2029.
Company believes Mahalo gas would qualify as additional gas under the proposed reservation scheme.

Comet Ridge Limited (ASX:COI) has released a development and gas market update for its Mahalo Gas Hub in Queensland. The company now owns 100% of the hub after completing the acquisition of Santos' 42.86% interest in the Mahalo Joint Venture on 21 August 2026. The hub covers 1,847 square kilometres across five permit groups.

Reserves and Staged Development Plan

On a 100% basis, the hub holds 361 PJ of 2P Reserves, 725 PJ of 3P Reserves and 315 PJ of 2C Contingent Resources. Production licences PL 1082 and PL 1083 hold 266 PJ, or 74% of the hub's 2P Reserves, and carry no Queensland domestic supply condition.

Comet Ridge is targeting a final investment decision in mid-2027 and first gas in 2029. Stage 1A, which forms the basis for FID, involves about 50 well sets and an initial 50 TJ/d plant. Later stages would lift capacity to 70 TJ/d and potentially up to 100 TJ/d. The company is revising Santos' original front-end engineering design to cover the full hub as a standalone operator.

Domestic Gas Reservation Scheme

The Commonwealth introduced Domestic Gas Reservation Scheme legislation to Parliament on 14 October 2026. Under the proposal, LNG export licence holders must supply domestic customers up to a ceiling of 20% of exported volumes, with the domestic supply obligation starting on 1 January 2028.

Supported by legal advice, Comet Ridge believes gas from the hub would qualify as additional gas and could be sold to Gladstone LNG facilities for export. The company noted this remains subject to the final legislation, the AER's baseline determination and ministerial discretion.

Gas Marketing Progress

Comet Ridge has a gas sales agreement with CleanCo for 21 to 25 PJ over seven years, with conditions precedent progressing. This leaves about 336 PJ of 2P Reserves uncontracted.

The company is in active discussions with Gladstone LNG participants and other large buyers, and is seeking LNG netback-referenced pricing. No binding agreement has been reached with any party, and the company noted there is no certainty one will be. AEMO forecasts peak-day shortfall risk in southern regions from 2029.

Key Takeaways

Full ownership of Mahalo gives Comet Ridge control over development and marketing.
Stage 1A forms the basis for a mid-2027 final investment decision.
The reservation scheme outcome could shape where Mahalo gas is sold.
Most 2P Reserves remain uncontracted, with buyer talks ongoing.

FAQs

Q: What share of the Mahalo Gas Hub does Comet Ridge own?

A: Comet Ridge now owns 100% of the hub.

Q: How large are Mahalo's 2P Reserves?

A: The hub holds 361 PJ of 2P Reserves on a 100% basis.

Q: When is first gas targeted?

A: First gas is targeted for 2029, with FID in mid-2027.

Q: What is the CleanCo agreement?

A: A gas sales agreement for 21 to 25 PJ over seven years, with conditions precedent progressing.

Q: What is the Domestic Gas Reservation Scheme?

A: Proposed legislation requiring LNG exporters to supply domestic customers up to 20% of exported volumes from 2028.

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