QGC gas contract with Incitec Pivot now unconditional

QUEENSLAND Gas Company has now met all the conditions for its 10-year gas sales contract with Incitec Pivot Limited, QGC said this morning.
QGC gas contract with Incitec Pivot now unconditional QGC gas contract with Incitec Pivot now unconditional QGC gas contract with Incitec Pivot now unconditional QGC gas contract with Incitec Pivot now unconditional QGC gas contract with Incitec Pivot now unconditional

Under the contract, which is now unconditional, QGC and joint venture partner Pangaea Oil & Gas will supply 7.4 petajoules of coalbed methane a year to Incitec Pivot’s fertiliser plant at Gibson Island at the Port of Brisbane.

The supplies are scheduled to start in the third quarter of 2007.

QGC managing director Richard Cottee said the final condition precedent relating to his company getting firm financing approval for its second gas supply contract had been met.

“With funding assured for both the CS Energy and Incitec Pivot contracts, QGC is now single-mindedly focused on constructing the necessary infrastructure and producing gas as soon as possible to meet our customers’ needs,” he said.

“These two major contracts confirm QGC as a significant Queensland energy company.”

QGC is contracted to supply CS Energy with gas at a rate of 4 PJ per year by July 2006, but it plans to bring forward the first delivery to March next year.

When the Incitec Pivot deliveries of 7.4 PJ begin in 2007, QGC and its joint venturers will be supplying gas equivalent of about 10% of the current Queensland gas market.

In PL201 (Berwyndale South), QGC holds a 90% interest in partnership with Sentient Global Resources Fund (10%). At ATP 620P (Argyle), QGC holds 59.375% in partnership with Pangaea Oil & Gas (40.625%).

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