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ASX RELEASE

30 October 2009

The Manager

Company Announcements Office Australian Securities Exchange 4[th] Floor, 20 Bridge Street Sydney NSW 2000

Electronic Lodgement

Dear Sir or Madam

Company Announcement

I attach the following announcement for release to the market:

Chairman’s address to the Annual Meeting
Managing Director’s address to the Annual Meeting
Annual Meeting presentation
Securityholders questions and answers

Yours sincerely

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Mark Knapman Company Secretary

APA Group Annual Meeting

30 October 2009

APA Group 2009 Annual Meeting Chairman’s Address

Ladies and gentlemen,

Despite the unprecedented environment and challenges of global financial markets, APA Group had a strong financial performance and steady, largely organic growth in the past financial year.

Financial performance

APA delivered a record underlying financial result for the 12 months to 30 June 2009.

This represents our ninth successive year of record performance.

These results were driven by the strong performance and growth of our gas transportation and distribution business.

APA’s revenue was $959 million - a 7% increase on the previous year.

EBITDA (that is, earnings before interest, tax, depreciation and amortisation) was $459 million – also a 7% increase on the previous year.

Our business of transporting and distributing gas, and operating gas assets, is a strong, cash-generating business.

APA achieved an operating cash flow of $234 million - a 22% increase on the previous year, which resulted in operating cash flow per security of 48.2 cents - an increase of 13% on the previous year.

The increase in operating cash flow provided the basis for increased distributions to securityholders.

The total distribution for the year was 31 cents per security – which is a 5.1% increase on the previous year, achieving the guidance provided at last year’s Annual Meeting in October 2008 and repeated at the 2009 interim results announcement in February this year.

As we have done since the listing of APA, we have continued to ensure our distributions are covered by operating cash flow.

Cash remaining after distribution payouts was used to fund business growth, as was the $79 million capital raised through the Distribution Reinvestment Plan and the Security Purchase Plan which operated during the year.

Capital management

Given the global financial crisis, our balance sheet became one of our main priorities during the year.

The crisis created an environment of fear and uncertainty, particularly in the financial and debt markets. To manage the refinancing risk that was emerging

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APA Group Annual Meeting

30 October 2009

from this crisis, we felt it was prudent to begin our refinancing program for the $1 billion of debt due in 2010 well ahead of time.

In a tight credit environment, we received strong support from banks and global debt markets. Subsequent to the year under review, we have locked in new facilities totaling of $1.365 billion through a successful US private placement, a new five-year bilateral facility and a new syndicated facility.

Not only have these initiatives effectively refinanced our debt maturing in June and September 2010, but they have also provided a stable base from which to finance our growth capital expenditure over the next couple of years.

During the year we obtained a Triple-B credit rating from Standard & Poor’s, formalising APA’s investment-grade status.

APA now enjoys greater access to new global debt markets which provide longer debt tenor in line with the long term nature of our assets.

We will continue to manage the balance sheet prudently, with levels of debt and equity maintained in accordance with an investment grade business of triple BBB or better.

The Board continues to see the operation of the Distribution Reinvestment Plan and Security Purchase Plan as important tools in the ongoing capital and balance sheet management activities. Indeed both have been operated successfully over the last few years, attracting considerable interest from securityholders.

Any future operation of the Security Purchase Plan will take into account the change to the maximum subscription allowable under the Plan that will be put in place if the changes to the constitutions of Australian Pipeline Trust and APT Investment Trust being voted on here today are approved – I’ll return to that point in a moment.

Security price performance

Since listing almost a decade ago, total returns to APA securityholders have exceeded the S&P/ASX 200 accumulation index, with a compound annual return to securityholders of 13%.

This year, APA is one of the few companies whose security price increased while the value of Australian shares on the market fell.

We gained 42 cents in the 15 months to September 2009 - a 15% increase on the corresponding period the previous year - while the market fell by 3% in the same period.

As of 7 October 2009, APA became a top 100 business, as measured by the S&P/ASX 100 index.

Strategic achievements

In the midst of a period of global uncertainty, we adhered to our strategy of growing the business sustainably and profitably, whilst also strengthening our balance sheet.

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30 October 2009

We completed the establishment of the an unlisted investment vehicle, Energy Infrastructure Investments, in December 2008, selling a number of APA’s annuity-style assets into the vehicle and attracting international industry experts, Marubeni Corporation and Osaka Gas Company, as co-investors.

APA continues to benefit from these assets through retention of a 19.9% equity interest in the assets, and from managing these assets under a long term operating agreement.

The $647 million in funds received from that transaction was predominantly used to pay down debt.

Growth

APA is the country’s largest natural gas infrastructure business, and our pipelines connect all major gas sources to major markets - delivering more than half of the natural gas used in Australia.

We continue to actively expand the capacity of our infrastructure to meet the growing demand for natural gas in Australia. This is an exciting challenge for APA and your Managing Director will provide more detail on how we are doing this in his address.

During the year, in addition to expanding our infrastructure, we also increased our interest in Envestra Limited during the year from 18.3% to 30.4% through participation in, and partial underwriting of Envestra’s rights issue and participation in Envestra’s Distribution Reinvestment Plan.

Securityholders

Following last year’s Annual Meeting APA established a sale facility, providing securityholders who held APA securities worth less than $1,000 the option to sell their securities free of brokerage costs.

Through this facility, the number of APA securityholders decreased by almost 27,000, or 26%, significantly reducing our register administration costs.

Constitutional change

Later in the meeting I will ask you to vote on amendments to the constitutions of Australian Pipeline Trust and APT Investment, and the constitution of Australian Pipeline Limited, the responsible entity – that is, resolutions 3 and 4.

The amendments to the Trusts’ constitutions primarily update those constitutions to reflect current market practice, and implement recent policy changes by the Australian Securities and Investments Commission regarding capital raisings.

I mentioned earlier the possibility of the Security Purchase Plan being reoffered. One of the changes to the Trusts’ constitutions being voted on today will, if the changes are approved, allow us to offer securityholders the ability to participate in the plan at various participation levels, up to the amount of $15,000, instead of the limit of $5,000 that applied to last year’s plan.

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APA Group Annual Meeting

30 October 2009

Board and management remuneration

Moving to another matter now – I have received a number of questions concerning the remuneration of APA’s Board and management.

APA has both a strong Board and management team that have been key components of producing consecutive record financial performances.

The fees payable to the non-executive directors were reviewed again in December 2008. Even though APA was performing well, the Board took into consideration global economic conditions and decided not to increase their fees at that time.

The remuneration of executives is reviewed and determined by the Remuneration Committee. The committee engages independent remuneration consultants to benchmark executives’ salaries against salaries paid for comparable positions in comparable companies. The current APA policy is to pay at the median of the benchmark results.

Executive salaries include a substantial at risk component that is subject to the achievement of certain targets which must be exceeded by APA, some of which are financial targets – specifically, increasing distributions to securityholders by at least 5% over the year – as well as the achievement of individual performance objectives relating to operational and personal achievements Executives’ salaries over the year therefore reflect APA’s strong performance over that period.

I will provide further answers to questions we have received from securityholders later in the meeting, just prior to opening the meeting to questions from the floor.

Outlook

Now looking ahead, the Board remains focused on ensuring APA delivers secure and growing operating cash flow from all parts of our business.

We are seeing increasing demand for our natural gas transportation, distribution and storage services, and have committed to further expanding our assets in line with contractual and regulatory arrangements.

In the first quarter of the 2010 financial year, all parts of the business are performing in line with our expectations.

Barring unforeseen circumstances, it remains our intention to increase distributions in the 2010 financial year by at least 5%, with distributions fully covered by operating cash flow.

Conclusion

In conclusion, I would like to acknowledge and thank my fellow directors for their contribution and commitment this year.

Also, on behalf of the board, I would like to thank all APA employees, led by our Managing Director Mick McCormack and his management team, for their

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30 October 2009

commitment and dedication to the improvements within all areas of the company that have contributed to our continued success.

Finally, I thank you, our valued and loyal securityholders, for your ongoing support of APA.

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APA Group Annual Meeting

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APA Group 2009 Annual Meeting Managing Director’s Address

Thank you Chairman and good morning ladies and gentlemen.

There are few industries presenting such a safe haven for investors as Australia’s natural gas infrastructure sector.

This business has proven to be resilient in times of economic uncertainty, and well positioned to capture upside during growth times.

About APA – Security and Growth

We are Australia’s largest gas infrastructure business – and I’m proud to say, the most recent entrant to the S&P/ASX 100 index.

We deliver more than half the gas used across the country each year – and almost three quarters of the gas used in Australia’s eastern states.

This year, our business has continued to deliver essential energy services, with revenue secured under contracts or regulatory arrangements.

This year, we have produced our ninth consecutive record financial result and again increased distributions.

We continue to increase the capacity of our pipelines and infrastructure to meet customers’ demands for more services.

This growth seems set to continue as natural gas becomes an increasing part of Australia’s energy mix and greening lifestyle.

This map clearly shows the elements that make APA a secure and growing business.

Over the years we have developed an unrivalled portfolio of gas pipelines and distribution systems extending across the country, touching every gasproducing basin and connecting to every major market.

Australia has a plentiful supply of natural gas, both in the east and the west of our country.

Demand for natural gas continues to grow locally, and internationally.

Our pipelines and networks will continue to expand to meet this increasing demand for natural gas.

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Business performance

Our chairman spoke earlier of our record underlying financial result this year.

I would now like to talk briefly about the performance of each business segment and the key drivers of these results.

I’ll also outline the projects and opportunities ahead that will continue to add strength to our business.

This table shows how each of our three business segments contributed to our strong result. All have performed well, with some delivering outstanding performances.

Our largest business segment, Gas Transmission and Distribution , recorded an increase in earnings before interest, tax, depreciation and amortisation (or EBITDA) of 14%, to $384 million - mainly due to the performance of our assets in the eastern states.

The EBITDA performance of our Asset Management and Energy Investments segments also increased. These are smaller but strategic divisions of our business.

APA’s Asset Management business manages and operates in excess of $8 billion of assets – approximately $4 billion of these being directly owned by APA, and $4 billion of which APA has an equity interest in – that is, the Energy Investments segment.

Asset Management EBITDA increased by 7% to $30 million, while Energy Investments EBITDA increased by 21% to $22 million.

As the Chairman mentioned, we sold assets into Energy Infrastructure Investments in December 2008, hence we have six month’s EBITDA contribution from those assets.

I will take you on a quick tour around the country to highlight performances in 2009 as well as the projects we have planned for the 2010 financial year for our gas transmission and distribution segment.

Starting in the eastern part of the country, we’ll work our way around.

Queensland

APA’s three gas infrastructure assets in Queensland performed well.

We expanded the capacity of the Carpentaria Gas Pipeline by 15% with the construction of a compressor station at Davenport Downs.

The additional capacity is contracted by a number of miners on the pipeline, and the benefit of this additional revenue will be seen in the 2010 financial year.

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The downturn in the resources sector did not impact the pipeline.

The Roma Brisbane Pipeline is the only pipeline delivering gas into Brisbane, and is physically interconnected with APA’s Gas Network that services south east Queensland, including southern Brisbane.

We continue to grow the gas network into new housing development areas – such as the corridor between Brisbane and the Gold Coast.

Work completed in 2009 provides the infrastructure to deliver gas to 9,000 new homes in the region.

The Queensland State Government is encouraging the use of gas in homes and businesses under its Climate Smart initiative.

As a consequence we expect greater demand for gas from existing homes as well as the use of gas in new homes.

We will continue to expand the Roma to Brisbane Pipeline in line with our customers’ needs.

New South Wales

The main pipeline in New South Wales is the Moomba Sydney Pipeline.

It is a large pipeline positioned in the middle of an interconnected network of pipelines in eastern Australia.

It transports gas from Moomba - sourced from the Cooper Basin or Queensland coal seam gas - as well as transports gas from Victoria, into all parts of New South Wales.

The Central Ranges Pipeline, which we acquired in August 2008 is connected to our system.

It is near the coal seam gas developments in the Gunnedah Basin.

In addition to transporting gas to Tamworth, we envisage it will also transport coal seam gas from the Gunnedah basin. In the meantime it is also providing storage capacity for New South Wales.

Our New South Wales assets performed well this year.

A combination of revised tariffs and increased utilisation of the Moomba Sydney Pipeline were the main reasons for the increased performance of this asset.

The pipeline is now fully utilised, and we completed the first of five years of incremental expansion of the mainline’s capacity in line with the contractual requirements of our customers.

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The additional capacity is required to meet winter peak demand, as well as gas storage within the pipeline.

With the expected increase in gas-fired power generation we expect to see an increase in demand for pipeline capacity.

Recently we announced the expansion of the southern section of our New South Wales system. The additional capacity will provide additional storage in the system to meet the needs of power generators in the region.

Because the system is interconnected with Victoria, it will be able to store gas that enters via Moomba in the north west, or from Victoria through the interconnect.

Victoria and South Australia

Victoria also performed well, and the improved result largely reflects the full year effect of the regulatory tariffs under the January 2008 access arrangement.

The delivery needs of this system continue to grow, and consequently we will increase the capacity of the system to meet the needs of customers in the northern part of Victoria, as recently announced.

By owning and operating both the Victorian and the New South Wales system, work done on either system benefits the other.

As a result of these two expansions, we will effectively increase our ability to move gas between states, adding further flexibility and improving security of supply.

Western Australia

The result in Western Australia was also pleasing.

We expected the resources downturn to affect mining operations, but the impact was very minor, and more than offset by the growth in demand for gas from other mines during the year.

We expanded the Goldfields Gas Pipeline with two new compressor stations, increasing pipeline capacity by 20%.

The capacity increase on the pipeline will deliver additional revenue in the 2010 financial year.

In March this year we submitted a revised access arrangement for the Goldfields Gas Pipeline to the Western Australian energy regulator – ERA.

The draft submission was released in October and we are currently in the process of responding to the draft.

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There are some key areas of the draft where we disagree with the regulator. And as we have done many times before with our regulated assets, we will work closely with the regulator to seek to achieve a positive outcome.

Our Parmelia pipeline and Mondarra gas storage facility provide flexibility to customers who transport gas to Perth and surrounding areas.

The storage facility is becoming a more important piece of infrastructure in managing the variations of gas demand, especially in power generation.

We are currently working with our customers to see how to best match their requirements with the storage facility, and will further develop the storage facility in line with their needs.

Northern Territory

In the Northern Territory we recently constructed the 287 km Bonaparte Gas Pipeline and the smaller 13 km Wickham Point Pipeline.

Designing, constructing and operating pipelines is one of our key capabilities and it is no surprise that we completed the construction of these pipelines ahead of schedule and on budget.

These two pipelines, together with the Telfer Pipeline in Western Australia, were some of the assets sold into the Energy Infrastructure Investment vehicle.

We maintain a 20% ownership in the vehicle and continue to operate these assets on behalf of all the owners.

Energy investments

APA has a minority equity interest in a number of energy assets and energy businesses. These include

the Energy Infrastructure Investments vehicle I just mentioned,
Envestra – Australia’s largest gas network business,
the SEA Gas Pipeline, and
the Ethane Pipeline in New South Wales.

As I mentioned earlier, our people manage and/or operate these assets totalling more than $4 billion in value. As a result we play an active role in our investments and retain the operating and management skills within APA.

At the beginning of this month we announced a small investment of approximately $20 million in a wind farm being developed by AGL, one of our customers. APA will hold a 20% interest in the wind farm, with the remaining interest held by our Energy Infrastructure Investment partners – Marubeni and Osaka Gas of Japan.

In addition to providing a very sound long term financial return, this investment gives us the opportunity to work closely with one of Australia’s largest energy

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retailers, and to better understand and respond to the changing energy environment.

Growth drivers

As I outlined previously, we are progressing more than $200 million of growth projects in the 2010 financial year.

These projects will deliver secure revenue in the future, being either underwritten by contracts or included in regulatory arrangements.

This is how we are delivering security and growth to our securityholders.

As we look forward we see many more development opportunities for our business.

Natural gas has been available for commercial use in the Australian market for 40 years, and its use as a primary fuel has increased in both absolute terms and as a share of total energy use.

This growth trend is expected to continue during the next 10 years, particularly influenced by carbon reducing initiatives such as the Federal Governments’ proposed Carbon Pollution Reduction Scheme and the recently legislated Renewable Energy Targets.

Gas use is being encouraged to replace less carbon-friendly fuels in homes and businesses and as a fuel for electricity generation.

These changes are good for APA, and for the environment, with the requirement of more gas, more gas-fired generation, and hence more pipeline capacity and services.

The renewable energy targets set are increasing investment in wind and other alternative energy generation. Due to the intermittent operation of generation from renewable sources, wind generation in particular, gas-fired peaking plants will be required to provide back up electricity.

Depending on the final design of the carbon pollution reduction scheme, gasfired plants will progressively generate more base-load electricity with higher carbon costs.

Regardless of the final outcome, significant new investment in gas pipelines will be required to facilitate the uptake of gas-fired generation.

There is currently more than 10,000 MW of gas-fired generation plants in construction or planning stages, or proposed in eastern Australia.

Each of these power stations will require gas transportation and storage services, and APA is in the advantageous position of having the infrastructure in place, and the skills and experience to provide this.

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Building Australia’s gas infrastructure

We continue to work closely with our customers to develop the infrastructure and services they require to meet their business needs.

We will expand or augment our pipeline system, and in some cases build completely new pipelines for our customers.

And as we need to spend large dollar amounts up front to provide these services, we seek the security of contracts.

Almost all pipelines built in the last 15 years in Australia have been built on commercial terms between customers and pipeline companies such as APA.

The pipeline industry has concerns that third parties such as regulators are seeking to interfere in this process. There is no need for any government or regulatory body to instruct where, when and how to build this infrastructure.

We believe that this should remain the case and we will strongly oppose the interference of third-party planners instructing APA, and other pipeliners, how to grow our business and how to price our services.

APA people, safety and environment

I am particularly proud of our people. Within APA we have all the commercial and operational skills to manage, grow and improve our business.

Our people are engaged, working with a great sense of ownership to deliver greater value to the business and to our customers.

This is one advantage of being a truly independent operating business, and within the Australian gas infrastructure sector, APA is a leader on this front.

As a responsible employer and corporate citizen, APA strives for high standards of environmental and safety performance, and conducts its operations efficiently and according to best practice standards. In our construction projects we were active in minimising the impact to the environmental, such as recycling water used in directional drilling, or salvaging plants from pipeline easements during construction for revegetation.

APA’s main direct carbon emissions arise from fuel used for compressors on transmission pipelines and unaccounted for gas in distribution networks.

APA is rehabilitating older, cast-iron pipe on our distribution network with new plastic pipe to reduce system leakage and reduce emissions.

Safety remains a high priority for APA.

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We have improved our safety performance during the year, and with particular focus on early recognition and reporting of potential safety risks, we will continue to focus on improving safety across the business.

Conclusion

APA is in a strong position to continue delivering security and growth in the coming years as we focus on capturing further profitable growth opportunities provided by our gas infrastructure assets across the country.

I am confident that the combination of our assets, our people, the attractive growth projects and our strengthened balance sheet will enable us to continue delivering on our objective to maximise value for our securityholders.

Thank you.

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Chairman’s address

APA Group Annual Meeting 30 October 2009

APA Group Annual Meeting 2009 � 1

APA’s consistent performance

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Underlying operating cash flow
Operating cash flow
250 $234 m
200
150
100
50
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
$ million
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Underlying EBITDAEBITDA

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500 $459 m
400
300
200
100
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
$ million
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Operating cash flow per security
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48.2 cps
50
40
30
20
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
cents per security
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Distributions per security

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35
31.0 cps
30
25
20
15
10
5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
cents per security
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Creating value for APA securityholders

APA Group Annual Meeting 2009 � 2

Record financial results

Strong growth in all key financial measures

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FY 2009
Revenue $959 million 7%
EBITDA $459 million 7%
Net profit $110 million 34%
Operating cash flow $234 million 22%
O eratin cash flow er securit 48.2 cents
p g p y 13%
Distribution per security 31.0 cents 5.1%
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Underlying financial results above are adjusted for significant items, and include Envestra distributions and complementary asset finance leases.

Operating cash flow = net cash from operations after interest and tax payments, adjusted for significant items.

APA Group Annual Meeting 2009 � 3

APA distribution growth

Growing distributions by at least 5%

2009 full year distribution of 31.0 cents per security – an increase of 5.1%
Distributions are well covered by operating cash flow
Surplus cash contributes to funding further business growth

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