Delays and Financing Challenges Loom as QPM Pushes Isaac Power Station Forward
QPM Energy has made significant strides in advancing its 112MW Isaac Power Station, securing major financing and operational milestones that position it well for mid-2027 commissioning.
- Full Notice to Proceed issued for 2 GE Vernova LM6000 gas turbines
- $113.7 million Master Lease Agreement signed with Macquarie Bank
- Townsville Power Station returns with improved efficiency post-overhaul
- Gas supply ramp-up and field development targeting 37TJ/day ahead of IPS
- Queensland’s 5 Year Energy Roadmap aligns with QPM’s gas-fired strategy
Isaac Power Station Development Accelerates
QPM Energy Limited (ASX – QPM) has reported robust progress on its flagship 112MW Isaac Power Station (IPS) project during the September 2025 quarter. A key highlight was the issuance of a Full Notice to Proceed to GE Vernova for the supply of two LM6000 aeroderivative gas turbines, with major equipment expected to arrive in Australia by April 2026. This milestone was underpinned by a $113.7 million Master Lease Agreement with Macquarie Bank, securing full funding for the turbine purchase and associated costs.
Complementing this, QPM executed a Preliminary Works Agreement with Powerlink Queensland to facilitate grid connection at the Moranbah substation, just 2km from the IPS site. The company also lodged a Material Change of Use Development Approval application with Isaac Regional Council, signaling regulatory progress ahead of construction.
Operational Gains at Townsville Power Station
The Townsville Power Station (TPS) returned to service in late July following a major overhaul, delivering improved electricity generation efficiency. Despite a delayed ramp-up due to the overhaul, TPS has operated smoothly, contributing 29,257 MWh during the quarter. New contracts with North Queensland Gas Pipeline and Ratch Australia Corporation have yielded significant cost savings, enhancing operational economics.
Gas supply from the Moranbah Gas Project (MGP) increased to an average of 25.2 terajoules per day, up 3.6 TJ/day from the previous quarter. QPM has planned an ambitious field development program targeting approximately 37 TJ/day ahead of IPS commissioning. This includes well workovers, cleaning blocked laterals using coil tubing, installation of wellhead blowers to reduce pressure, and a drilling program slated for 2026.
Strategic Alignment with Queensland Energy Policy
QPM’s strategy aligns closely with the Queensland State Government’s recently released 5 Year Energy Roadmap, which aims to double gas-fired generation capacity by 2035. The roadmap includes $400 million in seed funding to leverage private sector investment, with QPM’s Isaac Power Station positioned to contribute to the targeted 400MW of new gas-fired generation in Central Queensland.
Financially, QPM ended the quarter with $18.7 million in cash and equivalents, supported by stable financing facilities including the Dyno Nobel Development Funding Facility. Capital expenditure during the quarter included $3.6 million on upstream gas production and $1.8 million on IPS development.
Looking Ahead
With major equipment procurement secured and regulatory approvals progressing, QPM is on track to meet its mid-2027 commissioning target for the Isaac Power Station. The company continues to pursue additional financing partners to syndicate the project finance facility and is in discussions with strategic partners regarding potential equity contributions.
Bottom Line?
QPM’s strategic financing and operational advances set the stage for a pivotal growth phase in Queensland’s gas-fired power sector.
Questions in the middle?
- How will QPM finalize syndicate financing and what impact will it have on project timelines?
- What are the risks associated with the gas field ramp-up and well workover program?
- How might Queensland’s evolving energy policy influence QPM’s future project pipeline?
