The company, which is developing a nickel refinery in Townsville (known as the TECH project), now owns the Moranbah gas project which it intends to use to supply the project.

“As the transition from spring to summer weather patterns progresses, Queensland electricity market prices and volatility are increasing,” the company said in a market update.

“The combination of Townsville power station generation capacity and the gas storage available in the north Queensland gas pipeline allows QPME to capitalise on this volatility.

“For example, November 16, one such event occurred and TPS generated $551,442 of revenue including $175,164 during a five minute interval where prices reached $9810/MWh.”

The acquisition of the Moranbah gas project provides QPM and its subsidiary QPME coal mine waste gas.

It includes an operating business with significant revenues from gas sales of 7 PJ per annum to the Dyno Nobel Moranbah Ammonium Nitrate Plant, owned by Incitec Pivot Limited (“IPL”). Contracts are also in place to transport and toll gas through the Townsville Power Station for peaking electricity generation, with all electricity revenues accruing to QPME.

“During November, QPME has increased gas production sufficiently to commence operation of the Townsville Power Station in combined cycle mode (which uses gas and heat recovery),” the company said.

QPME was also looking further afield into third party sales particularly industrial users at the Townsville energy hub in Lansdown.

“The energy hub will facilitate significant de-risking of gas supply to the TECH project through accelerated development of gas and energy infrastructure as well as facilitate gas supply to third party customers in the immediate term.

QPME has already executed a memorandum of understanding regarding working together to establish gas supply to Ravenswood Gold and Agripower’s fertiliser project in Charters Towers.