IPL announces Gibson Island continues operations


Incitec Pivot Limited confirms gas supply for Gibson Island manufacturing operations to continue through 2022.

Incitec Pivot Limited (IPL) today announced that it will continue manufacturing operations at its Gibson Island industrial chemical plant after confirming a new gas supply agreement through to December 2022, securing the employment of approximately 400 workers at the site.

Managing Director and CEO Jeanne Johns said securing th e gas supply agreement and other commercial arrangements with Australia Pacific LNG provides certainty for workers at Gibson Island, as well as for IPL's customers, suppliers and shareholders.

“We are grateful for the support of the Queensland Government, particularly Premier Annastacia Palaszczuk and her Government’s domestic-only gas policy initiative to support local manufacturing businesses and jobs,” Ms Johns said.

“We also acknowledge the efforts of Minister Anthony Lynham and Minister Cameron Dick and their respective departments, for their valuable assistance in our endeavours on behalf of Gibson Island.

“We are pleased to partner with Australia Pacific LNG to obtain affordable gas for the continued operation of the Gibson Island plant. We also appreciate the support of APA Group, who will transport the gas to Gibson Island.”

The new agreement will provide IPL with a gas supply through to December 2022 providing certainty to allow a circa $100 million, three-year investment in major plant maintenance at Gibson Island.

The arrangements enabling the continuation of operations are subject to Australia Pacific LNG’s receipt of FIRB approval.

“I would like to recognise the efforts of our Gibson Island workforce for their commitment to running the plant safely and reliably, and also thank our customers across the agricultural and industrial chemicals sectors in Queensland for their continued support. Our customers have been loyal to the company and we will continue to supply high-quality, Australian-made products.”

Ms Johns said while the company is pleased to have secured a new gas supply for Gibson Island, this successful outcome is not a solution for the long-term issue of affordable gas in eastern Australia.

“The creation of an efficient east coast domestic gas market needs to be a priority - whether that is by increasing domestic production or ring-fencing more of it for domestic use.

“The fact that this gas could not have been secured without the assistance of the Queensland Government demonstrates clearly that the east coast gas market is working neither efficiently nor effectively.  East coast gas prices remain stubbornly high, whilst huge volumes of Australian gas are exported. Australian consumers and industry are being asked to carry the burden of this situation.

“A properly functioning domestic market is required to secure manufacturing jobs, future investment, and affordable energy for every Australian,” Ms Johns said.

Gibson Island uses gas as a feedstock to produce industrial chemicals and fertilisers, distributing to more than 4,000 cotton, sugarcane and sorghum farmers in Queensland and northern New South Wales.