New long-term gas supply agreement for Dyno Nobel’s Moranbah plant now unconditional
Incitec Pivot Limited’s (IPL) new long-term gas supply agreement for its Dyno Nobel ammonium nitrate plant in Moranbah is now unconditional, with the new supply agreement to begin in April 2026, following expiry of the current gas supply agreement.
The agreement with wholly owned subsidiaries of Queensland Pacific Metals Ltd (QPM) became unconditional on 25 August 2023, following QPM’s successful completion of the acquisition of the Moranbah Gas Project (MGP).
The long-term deal on competitive terms will supply gas to IPL’s Dyno Nobel Moranbah plant in northwest Queensland which produces explosives products vital to Australia’s resources industry, largely servicing customers in the Bowen Basin region.
Expected to sustain the long-term competitive advantage of the Dyno Nobel Moranbah plant, supply under the new agreement will commence in April 2026 and continue until at least March 2033, with an option to extend to March 2037.
As part of the new supply agreement, Dyno Nobel is providing $80 million in financial support to QPM in the form of a gas prepayment facility which will support the field development required for gas supply.
IPL Interim CEO Paul Victor said: “This competitive, long-term gas supply agreement will ensure our Moranbah plant continues to provide our valued customers with the explosives products they need to extract vital minerals and resources for Australians and export markets.
“Through this new gas supply agreement, we are securing the plant’s long-term future which has been part of the Moranbah community for more than 10 years, supporting regional jobs and ongoing production in the nationally important Bowen Basin metallurgical coal industry.
“By taking an innovative approach, our long-term competitive gas supply agreement will provide our Moranbah customers with sustainable domestic supply,” Mr Victor said.
Background
The Moranbah ammonium nitrate plant produces explosives products vital to Australia’s mining industry. Dyno Nobel last year celebrated the 10-year anniversary of its ammonium nitrate plant coming into operation and being part of the Moranbah community that serves customers in the Bowen Basin. Dyno Nobel has provided a long-term, genuine investment in the Moranbah community, including housing its workforce locally and supporting local organisations, initiatives, and events.
For media enquiries:
Debbie Guest
Group Corporate Affairs Manager
m: +61 455 745 639
e: debbie.guest@incitecpivot.com.au