Under the terms of the MOU, CH4 and Dyno will discuss CH4 providing gas, water, and other utilities as part of a feasibility study on a proposed facility that would produce ammonium nitrate and related products, to be located at or near Moranbah, Queensland.

This study is an alternative to the proposed expansion of the existing ammonium nitrate facility at Moura, Queensland, that was the subject of a separate feasibility study.

CH4 and Dyno have agreed to further advance discussions in relation to the provision of up to 6 petajoules per annum of coal seam gas over a period of about 15 years, to meet the needs of the proposed plant, which could start operating as early as 2008.

In addition, CH4 and Dyno have agreed to explore means by which they could assist each other in providing water supply, electricity co-generation, construction and housing requirements, said CH4 managing director Louis Rozman.

“The signing today of the MOU between CH4 and Dyno provides further evidence of the growing market in Queensland for locally produced gas, and the desire of major industrial users in utilising these local natural gas reserves,” Rozman said.