Australia's Incitec Pivot to Buy Gas from Walloons Coal Seam Gas Company

Fertilizer and chemicals manufacturer Incitec Pivot last week executed a gas supply agreement with Walloons Coal Seam Gas Company Pty Limited (a Shell-owned QGC business) for its Phosphate Hill manufacturing plant in North West Queensland.

This interim gas supply agreement is for supply for up to two years from January 1, 2017 through to the anticipated commencement of supply from Power and Water Corporation (PWC) under the long term gas supply agreement announced in November 2015. The agreement with PWC is scheduled to commence upon completion of the Northern Gas Pipeline to be constructed from Tennant Creek to Mount Isa.

Incitec Pivot has also entered into a gas transportation agreement with the APA Group for the transportation of gas under the QGC agreement.

The transportation agreement provides flexible services across multiple pipeline assets, the company said.

The new agreement, which is a renewal and augmentation of an existing contract, will now transport gas from sources in the Surat Basin to Phosphate Hill and will use APA’s services across the Roma Brisbane Pipelines, the Wallumbilla Gas Hub, the South West Queensland Pipeline, and the Carpentaria Gas Pipeline.