Brisbane, Australia – 4 December 2024 | QPM Energy Limited (ASX: QPM, “QPM” or “the Company”) is pleased to announce execution of binding agreements with RATCH Australia Corporation (RAC) and North Queensland Gas Pipeline (NQGP) in relation to the Townsville Power Station (TPS) dispatch rights and gas transport and storage services. These agreements mark a significant milestone in QPM’s strategy to enhance operational efficiency and strengthen its position as a key energy provider in the state of Queensland in Australia.
Highlights:
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Reduction in Fixed Costs:
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Total fixed annual charges across the two agreements will fall by 83% compared to the current contracted agreement.
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The new contract structure would have improved FY2024 financial performance by more than $30 million.
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Binding Agreements Signed:
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Dispatch Agreement with RAC:
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The agreements grant QPM dispatch rights to 100% of TPS’s 160MW gas turbine capacity, allowing it to supply gas and dispatch electricity to the National Electricity Market (NEM).
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The agreement has a 10-year term with a review at 3 years, and it commences 1 July 2025.
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Gas Transport and Storage Agreement with NQGP:
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The agreement secures minimum 12TJ/day gas transport and 20TJ firm storage capacity, with additional capacity available as needed.
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It also has a 10-year term with a review at 3 years, commencing 1 July 2025.
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De-Risking and Financial Benefits:
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The agreements significantly reduce financial risk and create opportunities to accelerate gas production growth plans.
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David Wrench, Chief Executive Officer of QPM, commented: “Finalisation of the binding agreements with two of our key partners, RAC and NQGP, is a significant derisking event for our business. The financial benefits expected to flow on from these agreements are now locked in and we look forward to the commencement of these new contracts from July 2025.”
Peaking Power Generation Strategy:
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QPM’s strategy aligns with the Australian Energy Market Operator’s (AEMO) recommendations that seek to increase power generation capacity, all in order to address:
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Rising power demand
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The retirement of coal-fired power stations
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Market volatility (caused by the variability of renewable energy generation).
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QPM will leverage the agreements to provide flexible gas-fired peaking power generation, meeting market demand during peak periods.
For further information, please contact:
David Wrench
Chief Executive Officer
[email protected]
About us:
About QPM Energy Limited:
QPM Energy Limited is a public company listed on the Australian Securities Exchange under the ticker ASX:QPM. QPM Energy is the 100% owner of the Moranbah Gas Project, a mature producing asset. Located a short distance north of Moranbah, the MGP has been in production since 2006, extracting gas from coal seams. QPM Energy acquired the MGP in August 2023. Under its ownership, QPM Energy has transformed the MGP into a significant gas producer with strong growth potential.
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
[email protected]
