Jemena and the APA Group will supply gas to Incitec Pivot’s fertiliser plant at Gibson Island in Queensland from the Northern Territory.
The supply will travel via about 3300km of pipelines, including the $800 million Northern Gas Pipeline and APA’s East Coast Grid.
Jemena’s new deal with IPL is in addition to its 2015 agreement with the Northern Territory’s Power & Water Corporation to transport 31 TJs of gas to IPL’s Phosphate Hill facility for 10 years.
Jemena acting managing director Antoon Boey said the new agreement would see the fertiliser manufacturer access an additional 32 TJs of gas per day from the expected commencement of the NGP’s commercial operations in December 2018 to December 31 2019, with an option for extension.
“This gas gives much-needed certainty to Incitec, and is a positive for the people relying on the Gibson Island facility, who will benefit not only from jobs which rely on gas as a direct feedstock, but from the flow-on effects of having a vibrant local economy and industry,” he said.
Today’s announcement means Jemena has contracted volume on the NGP to 70 per cent of its total available capacity in year one of its operations.
APA managing director Mick McCormack said the company’s transportation agreement with IPL was for an initial term concluding January 2020, with an extension option.
Gas will be received on APA’s Amadeus Gas Pipeline at Mereenie, then transported via the Northern Gas Pipeline, to enter APA’s East Coast Grid at Mount Isa. From there, it will travel via the Carpentaria Gas Pipeline, the South West Queensland Pipeline and the Roma Brisbane Pipeline to finally reach IPL’s plant near Brisbane, Queensland.