APA Group has extended its existing gas transportation agreement with fertiliser and explosive chemicals manufacturer Incitec Pivot Limited (IPL).
The three-year extension will run through to 1 January 2023 and support the continued operation of IPL’s Gibson Island manufacturing plant in Queensland.
Climbing gas prices on Australia’s east coast have previously put IPL’s future in Queensland in doubt, but the company recently made arrangements with Australia Pacific LNG (APLNG) for gas that will meet the Gibson Island plant’s needs until 31 December 2022.
For the years following this, IPL is hoping to obtain gas from Central Petroleum’s gas acreage in ATP 2031 where exploration activities are currently ongoing.
APA Managing Director and CEO Mick McCormack said the company was proud to be helping Australian manufacturers.
“IPL and APA have shared a long-term relationship and I am very pleased that we’ve been able to help them through these trying times of tight gas supple on the east coast,” he said.
“In June last year, we announced a new gas transportation agreement with IPL to deliver gas through some 3,300 km of pipelines to get gas to the Gibson Island plant until 1 January 2020, to keep the plant doors open whilst IPL investigated other gas supply options.
“For the 450 employees and their families and local community, knowing that the plant now has gas for another three years will be very welcome news indeed.”
IPL Managing Director and CEO Jeanne Johns said the Queensland Government had recognised the importance of local manufacturing to the economy.
“We are pleased that, with the support of the Queensland Government, we have been able to partner with APLNG, and our longstanding gas transport provider APA Group, to obtain affordable gas to continue to operate the Gibson Island plant,” he said.
For more information visit the APA website.
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