Incitec Pivot Ltd. (IPL) said its new long-term gas supply agreement for the Dyno Nobel ammonium nitrate (AN) plant in Moranbah, northwest Queensland, is now unconditional, with the new supply deal to begin in April 2026 following the expiration of the current gas supply agreement.
The new supply deal will continue until at least March 2033, with an option to extend to March 2037. IPL said the gas will be supplied on competitive terms and is expected to sustain the long-term competitive advantage of the Moranbah ammonium nitrate plant.
IPL said the new agreement, which was reached in May (GM May 19, p. 25) with wholly owned subsidiaries of Queensland Pacific Metals Ltd. (QPM), became unconditional on Aug. 25 following QPM’s successful completion of the acquisition of the Moranbah Gas Project, which will supply the gas (GM April 7, p. 27).
As part of the new supply deal, Dyno Nobel is providing A$80 million (approximately $51.8 million at current exchange rates) in financial support to QPM in the form of a gas prepayment facility, which will support the field development required for gas supply.
The Moranbah plant has 330,000 mt/y of ammonium nitrate production capacity and manufactures ammonium nitrate in prill form for ANFO and emulsion. The facility largely services customers in Queensland’s Bowen Basin region, a major coal-producing area and home to Australia’s largest coal reserves.