Incitec Pivot (ASX:IPL) today announced that the 50/50 joint venture project concerning the coal seam gas acreage (ATP 2031) in Queensland’s Surat Basin has been temporarily paused at the request of its partner Central Petroleum (ASX:CTP).
The oil and gas sector has been significantly impacted by logistical disruptions caused by the COVID-19 pandemic, as well as significant disruptions to the global oil and domestic gas markets.
Incitec Pivot’s (ASX:IPL) gas supply agreement with Central Petroleum (ASX:CTP)., for the supply of natural gas to the Gibson Island site in Queensland ended in December 2019.
Gas supply from Australia Pacific LNG will meet the plant’s needs from 1 April 2020 through to 31 December 2022.
Shares in Incitec Pivot (ASX:IPL) are trading 3.1 per cent higher at $2.01.