TECH on backburner as QPM ramps up energy ambitions

Queensland Pacific Metals is stepping back from its TECH battery materials project in Townsville and switching its core focus to advancing its gas and energy assets. The company said it would limit further expenditure on the TECH project, pointing to challenging nickel and battery metal market conditions. Its QPM Energy arm, which operates the Moranbah gas project, will become the company’s priority. QPM Energy chief executive officer David Wrench has been appointed as chief executive officer of QPM to lead the charge, while managing director and chief executive officer Dr Stephen Grocott will transition to a non-executive director role and continue to progress the TECH project. “History shows that nickel is a cyclical commodity and I look forward to working with the company and key stakeholders to secure a pathway forward for the TECH project," Dr Grocott said. "The underlying attractiveness of a low-cost, clean nickel supply remains compelling over the next years.” Mr Wrench said the company had uncovered many exciting opportunities to grow production, reserves and customer sales since acquiring the Moranbah project in August last year. "Accelerating these opportunities will position QPM Energy to take advantage of the tailwinds in the Australian gas and energy sector to deliver value for shareholders,” he said. Related: QPM plans Townsville energy hub as gas venture grows The company also intends to undertake a name change in the near future, which will be subject to shareholder approval. QPM Energy is undertaking a raft of initiatives to increase gas supply to 35TJ/day by the end of 2024. It plans to drill and complete seven new wells by year end, increase the field’s producing well count by returning existing off-line wells to production, and optimise the gathering system. In an announcement to the market QPM said its change in focus would provide additional resources for QPM Energy to accelerate, advance and execute other production growth and value-adding opportunities including: Increasing production from third party supply of mine waste gas from regional coal mines; Development of a portfolio of new baseload and peaking generation located at the company’s Moranbah facilities. This flexible generation portfolio is intended to use waste coal mine gas and MGP production to supply up to 300MW of power to the NEM; and Development of compressed natural gas and micro-LNG facilities in Moranbah and Townsville to distribute gas to North Queensland energy users. You may also like: https://industryqld.com.au/green-light-for-qpms-new-gas-hub

TECH on backburner as QPM ramps up energy ambitions

Industry Queensland

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