Starting later this month, gas will be transported from the Alinta pipeline – or the Wallumbilla to Gladstone pipeline – to the Roma to Brisbane pipeline, said Mosaic, which is 50% joint venture partner with Santos BOL.
The 18-month contract covered the receipt, transfer and redelivery of gas through the Wallumbilla LPG Plant facilities, which are owned 50/50 by Mosaic and Santos BOL, Mosaic said this morning.
“The Wallumbilla LPG Plant facilities provide flexibility for the movement of gas around the Wallumbilla hub and in doing so, add value to Mosaic’s assets in the Surat-Bowen Basin,” said Mosaic CEO Lan Nguyen.
“The initial contract of up to terajoules a day will complement Mosaic’s cashflow through incremental tariff income”, said Mr Nguyen.
Mosaic said the initial contract had a possible two-year extension, following mutual agreement between the two companies. It claimed that minimal capital costs would be recovered from cashflow within six months.
