Offtake and transport deals mark QPME’s second stanza

QPM Energy (QPME) has sealed a deal that chief executive officer David Wrench said would maintain operations and support the growth of the company. Marking the 12-month anniversary since taking over the Moranbah Gas Project (MGP), Mr Wrench told guests at a Moranbah Golf Course clubhouse function yesterday that the company’s future was solid. “Our business is all about delivering gas to customers and generating electricity,” he said. QPM CEO David Wrench addressing yesterday's celebration. “Again, we have had great support from Palisade, the owner of the North Queensland Gas Pipeline and Ratch Australia, owner of the Townsville Power Station." QPME this morning announced to the ASX that they have agreed commercial terms that would extend their relationship with both partners. The MGP is located in Queensland's Bowen Basin, 170km west of Mackay and 400km south of Townsville. The project, acquired from Arrow energy and AGL, is now the sixth largest gas producer on the ASX. Mr Wrench told guests at last night’s event the company had 'increased production, reinvigorated the gasfield and significantly increased the project’s reserve base'. Progress included increasing the producing well count from 96 to 127, heading towards more than 130. QPME Gas helped supply base-load power to the grid when conditions failed to support renewables, Mr Wrench said. Mayor Kellie Vea Vea represented Issac Regional Council at the event. “It is our gas that generates electricity at the right time needed to support the National Energy Market when the sun sets and wind doesn’t blow,” he said. “The electricity industry acknowledges that increasing the amount of reliable, firming gas fired generation in Queensland is essential to enabling the grid to handle ever more variable renewable and the exit of coal fired generation. “It is our gas reserves that can play a big part in the meeting looming gas shortages across Queensland and Eastern Australia.” The MGP was originally developed in 2004 and has evolved over time to capture increasing amounts of waste gas from coal mines that were responsible for 90 per cent of Queensland coal industry CO2 emissions. It collects, processes and transports waste mine gas, which is currently flared or vented, for industry use. Under Safeguard Mechanism Reforms, Bowen Basin coal mines will need to reduce their emissions by 687 PJ of gas (equivalent to 34mt CO2e) - over the next 10 years. QPME has contracts to supply gas to Incitec Pivot’s Dyno Nobel ammonium nitrate manufacturing facility in Moranbah together with Glencore’s Copper Refineries Limited and the RATCH Australia-owned Townsville Power Station via the North Queensland Gas Pipeline. The MGP sale to QPME included producing wells and associated gas gathering infrastructure together with existing processing and compression infrastructure capacity of 23.4PJ per annum.

Offtake and transport deals mark QPME’s second stanza

Industry Queensland

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