Interim gas supply secured for Gibson Island

Incitec Pivot Limited (ASX:IPL) announced today that it has entered into agreements for the interim supply of gas to its Gibson Island facility.

The agreements secure gas supplies for the Gibson Island manufacturing plant to the end of calendar year 2019, after the expiration of the existing gas contract in September 2018.

IPL Managing Director & CEO Jeanne Johns announced the finalisation of the 2019 interim gas agreements saying “the agreements with Central Petroleum Limited, Macquarie Mereenie Pty Limited, APA and Jemena Northern Gas Pipeline Pty Limited, recognise that the future of Australian manufacturing is underpinned by affordable energy.

“The completion of these agreements recognises the significant efforts by Central Petroleum, Macquarie, APA and Jemena in developing a commercial solution that supports domestic manufacturing. I acknowledge all those who have worked diligently to bring us to this point.

“While this is a significant step, it is just one of several in our ongoing efforts to secure the sustainable future of Gibson Island with an affordable, reliable source of natural gas. 

“The East Coast gas industry and Governments must recognise that domestic manufacturing needs affordable gas prices to remain viable.

“The Queensland Government has demonstrated strategic support for the future of industrial manufacturing with the development of domestic gas supply opportunities. This has played a critical role in creating a pathway for us to partner with Central Petroleum and have the potential to realise longer term affordable gas supply for our Gibson Island operations.

“These agreements also enable us to continue working with Central Petroleum on the development of acreage in Queensland, where appraisal and drilling activities are anticipated to commence late this year or early next year.

“I thank all our people at the Gibson Island plant for their patience and support as we have sought to finalise 2019 interim gas supply arrangements. Our employees have maintained their focus on safe and reliable operations, and their continued focus on safety is of the utmost importance,” Ms Johns said.