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APA GROUP — Capital/Financing Update 2013
Sep 25, 2013
64398_rns_2013-09-25_e8525f59-11a2-4169-8dc7-2aeab99748bb.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
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26 September 2013
APA Group (ASX: APA) (also for release to APT Pipelines Limited (ASX: AQH))
APA recontracts gas transportation services with Origin Energy on Moomba Sydney Pipeline
APA Group (ASX:APA), Australia’s largest natural gas infrastructure business, today announced a new gas transportation and storage services agreement with Origin Energy Limited (Origin) to support Origin to increase gas transport from Victoria into New South Wales.
The new agreement has a term of six years and commences at the expiry of the current contract in December 2013. Under this agreement APA will supply a revised suite of services on the Moomba Sydney Pipeline including increased gas transportation from Victorian gas sources and some reduction in services from Moomba.
To enable the increased gas flow into New South Wales from Victoria, APA will increase the capacity of the northern zone of the Victorian Transmission System by 59 per cent by looping sections of the Wollert to Barnawartha pipeline, at a cost of approximately $65 million. Capital works are scheduled to commence this year and are expected to be completed by winter of 2015. The expansion is underwritten by this new agreement and additional regulated revenues on the Victorian Transmission System.
Commenting on the new agreement with Origin, APA Managing Director Mick McCormack said “We continue to adapt APA’s gas pipeline infrastructure to serve the changing needs of our customers, particularly during this time when New South Wales requires increased flexibility in its sources of gas supply. APA has a longstanding commitment to work with our customers to identify, and invest in the development of, gas infrastructure required to support their business.
“The planned capacity increase in the northern zone of the Victorian Transmission System is an incremental development of APA’s east coast gas grid and will further enhance our ability to offer a flexible range of services. The Moomba Sydney Pipeline is an integral component of the east coast gas grid.”
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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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