APA Group and Incitec Pivot have signed a deal for gas supply to a fertiliser plant on Gibson Island in Queensland, via 3,300 km of pipelines.
The contract, which will start on the commencement of commercial operations on the Northern Gas Pipeline (NGP), will deliver gas from Central Petroleum Mereenie field in the southern Northern Territory.
The transportation agreement is for an initial term that concludes on 1 January 2020, with an extension option.
Gas will be received on APA’s Amadeus Gas Pipeline at Mereenie, then transported via the NGP to enter APA’s East Coast Grid at Mount Isa where it will travel via the Carpentaria Gas Pipeline, the South West Queensland Pipeline and the Roma Brisbane Pipeline to reach Incitec’s plant near Brisbane.
“Incitec is a foundation customer of APA and it is very pleasing to help an industrial customer, particularly one with an almost 100 year history of manufacturing in Australia,” said APA Managing Director Mick McCormack.
Central signed a Gas Sales Agreement with Incitec for the delivery of at least 20 TJ/d to Incitec’s fertiliser plant in Queensland.
Central is also in discussions with APA on upgrading the Mereenie to Amadeus Gas Pipeline lateral.