Oz APA, IPL Extend Gas Transportation Agreement

Australian gas infrastructure company APA Group has signed a three-year extension to an existing gas transportation agreement (GTA) with chemicals and fertiliser company Incitec Pivot (IPL), it said June 4.

The GTA supports the continuing operation of IPL’s Gibson Island manufacturing plant, APA said. Subject to certain approvals for the gas supply, the GTA will start January 1, 2020 and run through to January 1, 2023.

“IPL and APA have shared a long-term relationship and I am very pleased that we’ve been able to help them through these trying times of tight gas supply on the east coast,” APA managing director Mick McCormack, said. “In June last year, we announced a new GTA with IPL to deliver gas through some 3,300km of pipelines to get gas to the Gibson Island plant until 1 January 2020, to keep the plant doors open whilst IPL investigated other gas supply options.”

APA’s GTA comes after IPL secured gas supply from a new permit release near Chinchilla, Queensland. The Queensland government awarded the licence to APLNG-Armour Energy joint venture on the condition that gas produced must be sold to Australian manufacturing businesses.