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APA GROUP — Capital/Financing Update 2012
Jan 22, 2012
64398_rns_2012-01-22_5ed01ffd-e474-40db-a734-6ce8408bc01b.pdf
Capital/Financing Update
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ASX RELEASE
23 January 2012
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 Goldfields Gas Pipeline – further capacity expansions supporting customer growth
Yours sincerely
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Mark Knapman Company Secretary
ASX RELEASE
23 January 2012
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APA Goldfields Gas Pipeline – further capacity expansions supporting customer growth
APA Group (ASX:APA), Australia’s largest natural gas infrastructure business, today announced a further expansion of the Goldfields Gas Pipeline in Western Australia’s Pilbara mining region.
The new expansion is underpinned by a 15-year gas transportation agreement with the Mount Newman Joint Venture – in which BHP Billiton Minerals Pty Ltd holds an 85% stake – to supply new gas-fired power generation at Newman. The JV’s Yarnima power station development will provide power for existing and expanded mining operations in the region.
It is the second expansion of the Goldfields Gas Pipeline announced by APA in a month, with the first, an expansion backed by a 20-year contract with Rio Tinto, having been announced on 22 December 2011.
APA Managing Director Mick McCormack said these two pipeline expansions will deliver 44 TJ/day of additional capacity on the Goldfields Gas Pipeline, an increase of 28% of its capacity, and provide APA with additional secure contracted revenue.
“They reflect the boom in mining activity along our pipeline, and demonstrate APA’s continued ability and willingness to support our customers’ growing demands for natural gas, with our dedicated internal management and operational capabilities, ” he said.
The expansion work for the Mount Newman JV contract requires two new compressor stations, at Turee Creek and at the inlet to the Newman lateral, which will provide an additional 24 TJ/day on the mainline and the Newman lateral. The capital expenditure for this expansion and the work to cover the Rio Tinto contract totals approximately $150 million over the next two years.
These two expansions will be carried out concurrently with APA managing the construction project on behalf of the Goldfields Gas Transmission Joint Venture through which APA owns 88.2% of the Goldfields Gas Pipeline. The additional capacity for the Mount Newman JV will be available early in 2014.
See location map below.
For further information please contact:
Investor enquiries: Media enquiries: Chris Kotsaris Matthew Horan Investor Relations APA Group Cato Counsel Telephone: (02) 9693 0049 Telephone: (02) 9212 4666 Mob: 0402 060 508 Mob: 0403 934 958 Email: [email protected] Email: [email protected]
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ASX RELEASE
23 January 2012
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About APA Group (APA)
APA is Australia’s largest natural gas infrastructure business, owning and/or operating more than $8 billion of gas transmission and distribution assets. Its pipelines and assets span every state and territory on mainland Australia, delivering 50% of the nation’s gas usage. Unique amongst its peers, APA has direct management and operational control over its assets and the majority of its investments. APA also holds minority interests in energy infrastructure enterprises including Envestra, SEA Gas Pipeline, Hastings Diversified Utilities Fund and Energy Infrastructure Investments.
For more information visit APA’s website, www.apa.com.au
Additional information – Location of Goldfields Gas Pipeline expansion works for Mount Newman Joint Venture and Rio Tinto contracts
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KARRATHA
Yarraloola
compressor station
LEGEND
Expansion due to Rio Tinto contract
Expansion due to Mount Newman
Joint Venture contract
GOLDFIELDS GAS
PIPELINE
PARABURDOO WEST ANGELES
MINE SITE MINE SITE
NEWMAN New gas
fired power
generation
Paraburdoo
“Yarnima”
compressor
station Boonamichi Well Turee Creek
Newman inlet
off-take station compressor
compressor
station
station
0 50 100
KILOMETRES
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