Queensland Pacific Metals Ltd (ASX:QPM) subsidiary QPM Energy Pty Ltd is finalising the acquisition of the Moranbah Gas Plant (MGP) in Queensland and has signed an operations and maintenance (O&M) contract.
This O&M contract awarded to GR Engineering Services Ltd (ASX:GNG) subsidiary Upstream Production Solutions Pty Ltd, will provide operations and maintenance services for the MGP and its associated assets.
The contract, which is anticipated to generate revenue of $30 million annually for GR Engineering, is dependent on the successful transfer of MGP ownership from Arrow Energy to QPM Energy, which is slated to take place in the first quarter of FY24.
This five-year contract deal comes with a renewal option for an additional five years.
About the contract
As the designated operator of the MGP, Upstream PS will administer continuous O&M services, covering everything from the wellhead to the export pipeline. This includes all surface facilities O&M and connected brownfield projects.
The services to be provided by Upstream PS will not cover exploration and well drilling, well workovers, reservoir engineering, tenement and landowner management, or facilities and environmental remediation.
Upstream PS CEO Cameron Wills noted the company's pride in working with QPM Energy on a project designed to reduce emissions by utilising waste gas from operational coal mines. Wills emphasised that such an initiative aligns with the global shift towards minimising greenhouse gas emissions and promoting sustainable energy practices.
GR Engineering managing director Tony Patrizi expressed optimism regarding the partnership with QPM Energy. He said: “We are eager to operate and maintain this facility, working closely with QPM Energy to ensure safe and successful outcomes for this long-term project for Upstream PS.”