APA GROUP — Investor Presentation 2010

Oct 24, 2010

==> picture [584 x 96] intentionally omitted <==

ASX RELEASE 25 October 2010

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 Presentation – Citi Australian Investor Conference

Yours sincerely

==> picture [163 x 38] intentionally omitted <==

Mark Knapman Company Secretary

==> picture [721 x 129] intentionally omitted <==

Gas‐fired generation driving infrastructure growth

Mick McCormack, Managing Director Citi Australian Investor Conference, Sydney 25 October 2010

APA Group overview

Australia’s leading gas transmission and distribution business

==> picture [341 x 317] intentionally omitted <==

==> picture [19 x 27] intentionally omitted <==

• Infrastructure owner and operator – managing over $8 billion assets

• 12,700 km gas transmission

• 23,000 km gas distribution

• Delivering gas from all major gas production sources to all major gas markets

• transporting more than 50% of natural gas used in Australia

• and more than 70% in Australia’s eastern states

• Generating secure cash flows from contractual and regulatory arrangements

• Internally managed and operated business

• Listed on the ASX – June 2000 Entered S&P/ASX 100 – Oct 2009

APA is well positioned in a growing industry

2

APA growth drivers and opportunities

==> picture [659 x 374] intentionally omitted <==

----- Start of picture text -----

Growth drivers APA’s current development opportunities
Gas supply and
demand
Gas fired power
generation
Roma Brisbane Pipeline
Pipeline capacity expansion
Gas storage APA Gas Network
Expansion to new areas
Moomba Sydney Pipeline
Integrated market Mainline capacity expansion
Southern lateral
Pipeline storage
Mondarra Gas Storage Facility
Underground storage expansion
Strategic Victorian Transmission System
Pipeline capacity expansion
investment
management
----- End of picture text -----

3

Electricity generation driving gas demand

==> picture [205 x 225] intentionally omitted <==

==> picture [200 x 190] intentionally omitted <==

• Growth in gas volumes*

• Average annual growth rate of 3.4% pa over the next 20 years (compared with 1.4% for primary energy)

• 1,240 PJ in 2007‐08, doubling to 2,570 PJ in 2029‐30

• Factors influencing gas demand increase

• Investments in new gas‐fired electricity generation

• Mining sector (gas mainly used for electricity generation)

• Government policies supporting gas uptake as relatively clean energy source

• Population growth of 1.3% pa and GDP growth of 2.9% pa

• Growth in gas‐fired electricity generation*

• Average growth rate of 5% pa

• Share of total generation: 19% in 2007‐08 increasing to 37% in 2029–30.

• “Australian energy projections to 2029‐30”, ABARE March 2010

4

Good reasons for gas‐fired generation

� Reduced carbon emissions

==> picture [304 x 370] intentionally omitted <==

----- Start of picture text -----

Capital cost ‐ electricity generation
6,000
5,000
4,000
3,000
2,000
1,000
0
Gas Gas SC SC USC USC IGCC USC USC Nuclear
CCGT OCGT black brown black brown CCS CCS
coal coal coal coal black brown
coal coal
tonnes CO2e/MWh sent out
$/kW (2009$)
----- End of picture text -----

• Produces 30 to 50 per cent of the emissions produced by current coal technologies in generating electricity

� Quick start generation

• Suitable for managing peak demand

• Provides ‘natural hedge’ for electricity retailers

• Provides back‐up power for intermittent wind generation

� Fuel availability

• Relatively cheap fuel source

• Abundant indigenous gas supply

� Mature technology, competitive capital cost

• Proven performance

• Lower capital cost and construction lead time

Source: “Fuel resource, new entry and generation costs in the NEM”, ACIL Tasman, April 2009

Natural gas ‐ the optimum transition fuel for lower carbon emissions

5

A well positioned portfolio

Location of new and proposed gas fired generation

==> picture [500 x 288] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Eastern|WA & NT|
|Generation (MW)|
|market|market|
|Gas generation|
|Existing ‐ network|8,446|4,122|
|Existing ‐ non network|333|1,495|
|Under construction/|
|4,597|1,248|
|planned|
|Proposed|14,622|528|
|Wind generation|
|Existing ‐ network|493|191|
|Existing ‐ non network|998|‐|
|Under construction/|
|10,644|647|
|planned/proposed|

----- End of picture text -----

==> picture [9 x 10] intentionally omitted <==

APA assets and investments Other pipelines Proposed/ recently constructed gas power generation

==> picture [9 x 6] intentionally omitted <==

==> picture [10 x 10] intentionally omitted <==

Source: APA data; ESAA – Electricity Gas Australia 2010 Report

==> picture [4 x 5] intentionally omitted <==

==> picture [10 x 14] intentionally omitted <==

==> picture [9 x 10] intentionally omitted <==

==> picture [10 x 9] intentionally omitted <==

==> picture [10 x 10] intentionally omitted <==

==> picture [10 x 10] intentionally omitted <==

==> picture [10 x 10] intentionally omitted <==

==> picture [9 x 15] intentionally omitted <==

==> picture [10 x 10] intentionally omitted <==

==> picture [7 x 6] intentionally omitted <==

==> picture [133 x 186] intentionally omitted <==

6

Infrastructure and service requirements

Gas related services and infrastructure requirements

APA services and infrastructure

• Transport services � pipelines to transport gas

• Storage services � pipelines and storage facilities to ensure gas availability

• Gas pipelines providing transportation and storage services

• Underground storage facility (WA) providing storage services

• Gas flexibility � pipeline network and storage facility interconnection to access gas from multiple sources

• Optimal gas price � producer on producer competition

• Gas security � minimal supply interruptions

• Interconnected pipelines providing flexibility to source gas from multiple basins, enhancing producer competition and strengthening supply security

• Growth options � ability to expand services and infrastructure in line with growth

• Expanding infrastructure in line with customer growth

Other requirements

• Access to the electricity transmission grid; access to water; close to market

7

Currently delivering services to gas‐fired generation

==> picture [250 x 168] intentionally omitted <==

==> picture [338 x 244] intentionally omitted <==

Uranquinty power station

� Multiple gas sources

• Queensland and Cooper Basin gas via the Moomba Sydney pipeline

• Victorian Gippsland and Otway basin gas via the Victorian Transmission System and NSW interconnect

� Flexibility

• Connected to bidirectional pipeline that can move gas to the power station from either direction

� Storage

• Adjacent pipeline storage, including current pipeline expansion (Young Wagga looping), provides sufficient gas for 8 hours continuous power station operation

8

Summary

� Growth in gas fueled electricity generation

• Forecast to grow on average 5% per year – tripling over the next 20 years

• Gas fired power generation benefits

• Reducing carbon emissions – transition fuel

• Providing peak services and wind generation back‐up

• Mature technology, with relatively low capital cost

• Gas infrastructure assets well positioned to facilitate generation growth

• Pipelines across Australia transporting more than half the nation’s gas use

• Interconnected portfolio of pipelines and storage – flexibility

• Easily expanded to meet generation requirements

• APA actively encouraging development of gas generation on its pipelines

• Providing tailored and comprehensive services

9

APA’s energy infrastructure portfolio

==> picture [142 x 197] intentionally omitted <==

==> picture [83 x 166] intentionally omitted <==

==> picture [148 x 239] intentionally omitted <==

==> picture [110 x 135] intentionally omitted <==

==> picture [116 x 103] intentionally omitted <==

==> picture [5 x 36] intentionally omitted <==

==> picture [8 x 14] intentionally omitted <==

==> picture [30 x 17] intentionally omitted <==

==> picture [8 x 33] intentionally omitted <==

==> picture [8 x 4] intentionally omitted <==

==> picture [8 x 11] intentionally omitted <==

==> picture [53 x 10] intentionally omitted <==

==> picture [8 x 10] intentionally omitted <==

==> picture [34 x 34] intentionally omitted <==

==> picture [276 x 296] intentionally omitted <==

10

Disclaimer

The information contained in this presentation is given without any liability whatsoever to Australian Pipeline Trust or APT Investment Trust or any of its related entities (collectively “APA Group”) or their respective directors or officers, and is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the content of the information. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained herein and should conduct its own due diligence and other enquiries in relation to such information.

The information in this presentation has not been independently verified by APA Group. APA Group disclaims any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts set forth herein. No representation or warranty is made by or on behalf of APA Group that any projection, forecast, calculation, forward‐looking statement, assumption or estimate contained in this presentation should or will be achieved.

Please note that, in providing this presentation, APA Group has not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the addressee’s objectives, financial position or needs.

This presentation does not carry any right of publication. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by APA Group. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of APA Group.

11

Celebrating 10 years of delivering Australia’s energy

For further information contact

Chris Kotsaris Investor Relations, APA Group Tel: +61 2 9693 0049 E‐mail: chris.kotsaris@apa.com.au

or visit APA’s website www.apa.com.au

12

==> picture [584 x 100] intentionally omitted <==

ASX RELEASE

25 October 2010

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: chris.kotsaris@apa.com.au Email: matthew@catocounsel.com.au

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 more than 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

Page 1