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APA GROUP — Capital/Financing Update 2013
Nov 3, 2013
64398_rns_2013-11-03_38890773-f366-4e4a-a879-4f9fddc27943.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
4 November 2013
APA Group (ASX: APA) (also for release to APT Pipelines Limited (ASX: AQH))
APA to proceed with additional expansion of the Victorian New South Wales interconnect
APA Group (ASX:APA), Australia’s largest natural gas infrastructure business, today announced it will proceed with a further expansion of the Victorian – New South Wales interconnect following an extension to its gas transportation agreement with Lumo Energy.
The new arrangement with Lumo Energy is for a term of five and a half years, providing a revised suite of services from Victoria through to Sydney using APA’s Victorian Transmission System and Moomba to Sydney Pipeline. It renews a suite of transportation and storage services which expire in 2015 and replaces Lumo Energy’s current as available service on the Moomba Sydney Pipeline with a firm service. This is the third gas transportation agreement APA has entered into in the last two months to transport Victorian gas into New South Wales.
This expansion will involve an increase in compression at Culcairn, New South Wales, as well as additional looping on the Victorian Transmission System, at a total cost of approximately $25 million. This is in addition to the expansions required for Origin Energy, announced on 26 September 2013, and Energy Australia, announced on 23 October 2013.
The aggregate effect of the three expansions will be to increase firm peak winter gas flow capacity from the Victorian Transmission System into the Moomba Sydney Pipeline System by 145 per cent. All three expansions will commence this year and be completed by winter 2015.
APA Managing Director Mick McCormack said, "This agreement is another example of the flexibility of APA’s pipeline grid in supporting our customer’s gas transportation and storage needs. We are well placed to respond to changing supply and demand patterns, as demonstrated by the three separate capacity expansion projects that we have committed to in recent weeks. Each of these projects will increase gas flow capacity across the two states, providing further gas supply security for New South Wales.”
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Mark Knapman Company Secretary Australian Pipeline Limited
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For further information please contact:
Investor enquiries: Media enquiries: Chris Kotsaris David Symons Telephone: (02) 9693 0049 Telephone: (02) 9212 4666 Mob: 0402 060 508 Mob: 0410 559 184 Email: [email protected] Email: [email protected]
About APA Group (APA)
APA is Australia’s largest natural gas infrastructure business, owning and/or operating $12 billion of energy assets. Its gas transmission pipelines span every state and territory on mainland Australia, delivering approximately half of the nation’s gas usage. 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, Energy Infrastructure Investments and GDI.
APT Pipelines Limited is a fully owned subsidiary of Australian Pipeline Trust and is the borrowing entity of APA Group.
For more information visit APA’s website, www.apa.com.au
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