Miner welcomes gas supply competition

Posted November 17, 2015

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Incitec Pivot’s future is a lot brighter with the announcement that gas supply from the Northern Territory will go through Mount Isa.

A route through South Australia has been touted for a pipeline to feed demand on the east coast.

Jemena Northern Gas Pipeline will construct and operate the North East Gas Interconnector (NEGI) pipeline Northern Territory Chief Minister Adam Giles said in a statement.

The NT Government’s Power and Water Corporation (PWC) will supply gas to the NEGI from its contracted suppliers.

PWC will use a gas sales agreement with Incitec Pivot to lock in a guaranteed gas supply for approximately 10 years from the completion of the NEGI to 2028.

Incitec Pivot had been faced with energy price rises with the imminent completion of the current gas supply contract.

The long-term gas supply agreement with Power and Water Corporation and pipeline development was a step change in the continuing development of Northern Australia, said chairman, Paul Brasher.

“It will underpin existing regional jobs and create opportunities for many future investments,” Mr Brasher said.

“IPL’s fertiliser operation in North West Queensland is a major contributor to agriculture and is well placed to be part of Northern Australia’s long term development.

“The importance of this agreement will not be lost on those people whose employment revolves around the Phosphate Hill plant.

“This project will play a major role in the future development of Northern Australian agriculture, and in continuing to build a food source for Australia and Asia over the next decade.

“The Chief Minister of the Northern Territory has been true to his word on developing infrastructure for Northern Australia.”

Mr Giles said the new pipeline set up a long-term framework to increase gas supply, create a more competitive energy market and provide increased access to clean energy for local industry, Territory electricity generation and the eastern Australian gas market more generally.

“The combination of the NEGI pipeline, the PWC gas sale and a more efficient restructured PWC will promote development and competition in the Territory energy sector, create employment and reduce energy costs,” Mr Giles said.

 

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