The Greater Meridian Joint Ventures, comprising amongst others Westside CSG A Pty Ltd and Westside CSG D Pty Ltd (Westside) and Mitsui E&P Australia Pty Ltd (MEPAU), have announced today the entry into a Master Gas Supply Agreement (MGSA) with Queensland Nitrates Pty Ltd (QNP). Under the MGSA, up to 4.67 terajoules (TJ) per day will be delivered to QNP over four years, commencing 1 January 2024, with the potential for additional volumes to be supplied under the MGSA in the future.
QNP is a joint venture between Wesfarmers Chemicals Energy and Fertilisers and Incitec Pivot Limited, providing full-time employment for over 100 people, all based onsite in the Moura region. QNP produces high grade ammonium nitrate for the Queensland mining industry.
Gas supply will be delivered locally via the Queensland Gas Pipeline (QGP). The gas will be sourced from Westside-operated Greater Meridian fields adjacent to QNP’s production facility in Queensland’s Bowen Basin.
Westside acting CEO Ben Cheng welcomed the new MGSA, saying it contributes to increased supply to the East Coast domestic gas market.
“We’re pleased to partner with Moura local QNP. The MGSA is an important step forward for both parties.
The principal focus for Westside has been the investment of available capital into producing assets in the Greater Meridian fields. Westside has been prioritising its efforts in the Greater Meridian fields with the aim of supplying its domestic gas customers Alinta Energy, CleanCo Queensland and now QNP, bringing more gas to the East Coast domestic gas market earlier.
The Greater Meridian fields are connected to both the GLNG pipeline and the domestic market via the QGP. Westside is also a participant of the Wallumbilla Gas Exchange and can supply gas into the East Coast domestic gas market via the Wallumbilla Hub.
Westside continues to focus on production growth and consistent delivery, which continues to strengthen our position as one of Queensland’s most cost efficient and reliable gas producers,” Mr Cheng said.
Commenting earlier today, Mr Ken Yamamura, Managing Director & Chief Executive Officer of MEPAU said “MEPAU welcomes the announcement to supply gas to QNP over the next four years. A reliable, efficient, local supply of gas will benefit industry and benefit Queensland, and we’re pleased to see that outcome.
The agreement with QNP contributes to a stable gas supply to the East Coast domestic gas market, which we know is important both for industry and the Australian economy.”
This agreement is one of three domestic MGSAs the Greater Meridian Joint Venture has signed over the past two years.