Incitec Pivot (ASX:IPL) is in advanced talks with Queensland Pacific Metals (ASX:QPM) for a long-term gas supply agreement for its ammonium nitrate manufacturing plant in Moranbah, Queensland.

The proposed agreement would start in April 2026, after the current gas supply agreement expires.

Queensland Pacific Metals' acquisition of the Moranbah Gas Project depends on Incitec Pivot's consent to the assignment of the existing gas supply agreement.

Incitec Pivot says it will provide a further update around the middle of this year, once negotiations have been completed.