Incitec Pivot has announced it will continue manufacturing at its Gibson Island industrial chemical plant after securing a $100 million new gas supply agreement with Australia Pacific until December 2022 in Brisbane.
Incitec’s Gibson Island plant uses gas as a feedstock to produce industrial chemicals and fertilisers, distributing to more than 4000 cotton, sugarcane and sorghum farmers in Queensland and northern New South Wales.
Queensland premier, Annastacia Palaszczuk says for years, Queensland has been the state doing the heavy lifting when it comes to gas supply for Eastern Australia.
“Domestic gas supply is vital for electricity supply, energy for industrial customers, and as a feedstock for companies like Incitec Pivot,” Palaszczuk said.
“Whether its Incitec Pivot here in Brisbane, Sun Metals near Townsville, or Rheinmetall’s soon to be completed Military Vehicle Centre of Excellence near Ipswich, Queensland is cementing its place as Australia’s new home of industrial manufacturing.”
Jeanne Johns, managing director and chief executive officer of Incitec Pivot, says securing the gas supply agreement and other commercial arrangements with Australia Pacific provides certainty for workers at Gibson Island, as well as for Incitec customers, suppliers, and shareholders.
“We are grateful for the support of the Queensland State Government and their domestic-only gas policy initiative to support local manufacturing businesses and jobs,” Johns said.
“The new supply agreement demonstrates the benefits of the Queensland Government’s domestic only gas policy initiative in supporting local manufacturing businesses and jobs in Queensland.”
Anthony Lynham, minister for natural resources, says Queensland’s move to allocate gas tenements exclusively for manufacturing was an important extension of the Queensland State Government’s market-only gas policy.
“We know that all businesses crave certainty when it comes to planning future investment,” Lynham said. “Incitec Pivot’s three-year deal with Australia Pacific provides them with that certainty to plan for the future.”