Comet Ridge (ASX:COI) said the Australian government's policy of domestic gas reservation from liquefied natural gas (LNG) exporters, due to begin on July 1, 2027, has no direct policy impact on the firm but may influence markets in which it operates, according to a Tuesday Australian bourse filing.
It expects a "significant amount of consultation" to occur between gas producers and the government departments until the implementation of the policy. Comet Ridge believes that the government wants more supply in the market and may introduce a scheme that incentivizes new production from projects like Mahalo.
Comet Ridge noted that a significant proportion of its total natural gas reserves and resources are in the Mahalo block petroleum leases, PLs 1082 & 1083, and the potential commercial areas, PCAs 302 to 304, in the Mahalo gas hub, which have no domestic gas requirements.
Its shares fell 3% in recent trading on Tuesday.