Agribusiness

Energy deal to deliver gas 3300km to Incitec fertiliser plant

Grain Central, June 25, 2018

FERTILISER manufacturer, Incitec Pivot (IPL), has struck a deal with energy company, APA Group, for the delivery of gas from the Northern Territory through 3300 kilometres of pipelines to IPL’s fertiliser plant on Gibson Island near Brisbane, Queensland.

The landmark agreement is for an initial term that concludes 1 January, 2020, with an extension option.

Gas will be received on APA’s Amadeus Gas Pipeline at Mereenie in the Northern Territory, then transported via the Northern Gas Pipeline, to enter APA’s East Coast Grid at Mount Isa.

From there, it will travel via the Carpentaria Gas Pipeline, the South West Queensland Pipeline and the Roma Brisbane Pipeline to finally reach IPL’s plant near Brisbane.

APA managing director Mick McCormack said: “IPL is a foundation customer of APA and it is very pleasing to help an industrial customer, particularly one with an almost 100-year history of manufacturing in Australia.

“APA is pleased to have been able to help make this deal happen, not only through our investment in developing the East Coast Grid over many years, but also because we have worked very closely with IPL to understand and then meet their needs by providing services in a market which is currently in tight supply.”

Mr McCormack said this unique and innovative solution for IPL would help see the Gibson Island plant continue to operate and contribute to the Australian economy, importantly maintaining jobs for Australians.

“I am extremely pleased to say that APA has yet again been able to provide a cost effective and flexible service to one of its key customers. We are always looking to add value for our customers to assist them in optimising their energy requirements,” he said.

Source: APA Group

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