Incitec Pivot has been hit hard by rising gas prices, but it has abandoned its best hope of helping to fix the problem.
If fertiliser and explosives giant Incitec Pivot isn’t Australia’s most vocal gas user, it must be very close.
In 2018, Incitec and Central Petroleum won a tender for a new coal seam gas tenement in Queensland’s Surat Basin from the state government. The initial results from the ATP 2031 project looked pretty good, and by 2019 there was speculation the gas could helpBut ATP 2031 is now being shopped around as part of a broader strategic review being conducted by Central Petroleum.
Incitec Pivot referred this column’s inquiries to Central Petroleum as the operator of the tenement in question. But while there’s no shortage of irony in a major gas user giving up the chance to bring new gas to market, sources inside Incitec said its decision was a pragmatic one.and the site closed in December last year. Incitec’s other plants in Queensland, at Phosphate Hill near Townsville and at Mount Isa, are too far away from the Surat Basin to make transporting the gas economic.
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