Incitec finalises gas deals with Origin, QGC and APA

Incitec Pivot Ltd (IPL) and Origin Energy have finalised the deal which sees that latter providing IPL with 70 PJ of gas for 10 years starting 2007. IPL will also be receiving 74 PJ of coal seam gas for 10 years from Queensland Gas Company (QGC) and Pangaea Oil and Gas supply for 10 years starting 2007.

Both deals were initially inked on 6 September and IPL will use the gas to fire its fertiliser plants on Gibson Island, Brisbane. IPL has also signed a ten year deal with Australian Pipeline Trust (APA) to transport gas through the Roma to Brisbane gas pipeline.

In a statement IPL said, “In order to transport the gas from the Argyle Field to IPL, QGC and APA have agreed to build, own and operate a central processing plant and connecting pipeline from Argyle to the Roma to Brisbane pipeline, from which the gas will be transported to IPL’s plants on Gibson Island. The pipeline is planned as part of the development of the Berwyndale South gas field in PL 201 from which gas is contracted to be supplied to CS Energy from 2005.” The company did not elaborate further.