Energy company APA Group and Dyno Nobel-owned chemicals company Incitec Pivot have reached an agreement regarding commercial operations on the Northern Gas pipeline.
The in-development pipeline, which began construction in July last year at a projected cost of $800 million, spreads from the south of the Northern Territory to Gibson Island, Queensland. APA and Incitec Pivot’s agreement covers a transportation arrangement until January 1, 2020 with the option of extension.
The project is important to the NT Government, as it plans to develop Tennant Creek into a major mining services centre for the territory.
Gas will be received from APA’s Amadeus pipeline in Mereenie, then flow though the Northern Gas pipeline to APA’s East Coast grid at Mount Isa, from which it will then travel via three separate pipelines — Carpentaria, South West Queensland and Roma Brisbane — to its final destination, Incitec Pivot’s fertiliser plant at Mount Gibson, just outside Brisbane.
Incitec Pivot has a long history as one of APA’s customers and according to APA managing director Mick McCormack, the two have been working closely together to “provide service in a market which is currently in tight supply.
“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,” he continued. “We are always looking to add value for our customers to assist them in optimising their energy requirements.”