QPM Energy Limited (ASX:QPM) has finalized binding agreements with RATCH Australia Corporation and North Queensland Gas Pipeline. These agreements involve dispatch rights for the Townsville Power Station and gas transport and storage services. The new terms, starting July 1, 2025, are set to reduce fixed operating charges by 83% over ten years.
QPM Energy Limited has signed agreements to secure dispatch rights for the Townsville Power Station and gas services with NQGP, effective from July 1, 2025. These agreements are expected to cut operating charges by 83% and significantly boost financial performance. The deals align with QPM's strategy to expand gas-fired power capacity, addressing National Electricity Market volatility and capitalizing on peak electricity prices. The contracts span ten years, with a review option after three years, and support QPM's goal of enhancing operational efficiency and financial stability amid evolving energy demands.
QPM's financial performance for FY2024 could have been improved by over $30 million with these terms.