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APA GROUP — Capital/Financing Update 2008
Aug 20, 2008
64398_rns_2008-08-20_2f9c1297-a7a9-4bac-83bd-25c483f7c6ef.pdf
Capital/Financing Update
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ASX RELEASE
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21 August 2008
21 August 2008
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:
- APA Group enters into Memorandum of Understanding
Yours sincerely
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Mark Knapman
Company Secretary
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ASX RELEASE
21 August 2008
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APA GROUP ENTERS INTO MEMORANDUM OF UNDERSTANDING
APA Group (APA) announced that it has entered into a Memorandum of Understanding with Northern Territory’s PowerWater Corporation to build, own and operate the Wickham Point Pipeline.
When completed, the 12 km Pipeline will run from the existing Amadeus Gas Pipeline to the LNG Plant at Wickham Point near Darwin, and will also be capable of delivering gas to PowerWater’s Weddell Power Station.
The Pipeline is being developed in two stages, at an expected total cost of $36 million. Stage 1, connecting the Amadeus Gas Pipeline to Weddell Power Station, was built by APA for PowerWater Corporation in late 2007. Work has recently commenced on construction of Stage 2, connecting Weddell Power Station to the Wickham Point LNG Plant, with completion expected by second quarter 2009.
Under the Memorandum of Understanding, APA has agreed to acquire Stage 1 from Power Water Corporation, and to complete the construction of Stage 2. Acquisition of Stage 1 is to be completed by 30 September 2008 for approximately $6 million, with Stage 2 expected to cost approximately $30 million.
Under the Memorandum of Understanding, APA will enter into a long term agreement with PowerWater to provide gas transportation and storage services in the Pipeline. Along with APA’s Bonaparte Gas Pipeline, the Wickham Point Pipeline will provide additional security of supply to PowerWater Corporation and the Northern Territory.
For further information please contact:
Chris Kotsaris, Investor Relations APA Group Joanne Collins, Gavin Anderson & Company Telephone: (02) 9693 0049 or Mob: 0402 060 508 Telephone: (02) 9552 8939 or Mob: 0423 029 932 Email: [email protected] Email: [email protected]
About APA Group (APA)
APA Group, comprised of Australian Pipeline Trust and APT Investment Trust, is the major ASX-listed energy transmission company in Australia with interests in almost 12,000 km of natural gas pipeline infrastructure, over 2,300 km of gas distribution networks in south east Queensland, Coal Seam Gas processing plants, gas fired power stations, gas storage facilities and two high voltage direct current interconnector systems.
APA manages and operates all its assets and also provides management and operation services to gas distribution and transmission company Envestra (which owns 19,100 km of natural gas distribution networks and 1,029 km of natural gas transmission pipelines). It also holds an 18 percent stake in Envestra and a one-third interest in the SEAGas pipeline. APA Group has a varied and quality customer base including AGL Energy, Cooper Eromanga Basin Producers, Xstrata, Newmont, CS Energy, BHP Billiton, Zinifex, Incitec Pivot, Origin, RioTinto, Newcrest, Nickel West, Synergy and Verve Energy.
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