APA GROUP — Investor Presentation 2014

May 26, 2014

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APA Group Western Australian business overview and Mondarra Gas Storage Facility site tour

27 and 28 May 2014

Presentations and site tour

Presentations

• Western Australia business

• Welcome and APA overview – Mick McCormack (Managing Director)

• WA business overview – Rob Wheals (Group Executive Transmission)

• WA Transmission: mining regions – Steve Lewis (General Manager WA Transmission)

• Mondarra Gas Storage Facility – Aidan Trend (Mondarra Asset Manager)

• WA Transmission: south west region – Steve Lewis

Site tour

 Mondarra Gas Storage Facility

APA Group WA site tour 2014  2

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APA Group overview

Mick McCormack Managing Director and CEO

APA Group WA site tour 2014  3

APA executive and management – site tour

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 Steve Lewis  Barrie Sturgeon  Chris Kotsaris General Manager Senior Program Head of Investor Relations WA Transmission Manager and Communications  Michael Puls  Ian Duncan * Manager WA Commercial Group Treasurer  Aidan Trend  Jen Blake Mondarra Asset Manager Manager External Communications

• Michael Redway Team Leader Mondarra

 Nevenka Codevelle * General Counsel

• Tony Yelverton Team Leader Dongara

• Attending 28 May

APA Group WA site tour 2014  4

About APA Group

APA is Australia’s largest gas infrastructure business

 Gas transmission pipelines and storage

• Owning and operating two thirds of Australia’s onshore pipelines

• Interconnected pipeline networks

• Transporting approximately half the gas used domestically

 Gas distribution networks

• Owning and operating approximately a third of the nation’s gas distribution networks

 Other related energy infrastructure

• APA has developed and acquired complementary energy infrastructure, including gas and wind electricity generation, gas processing and electricity transmission

Jemena

Source: APA & AER State of the Energy Market 2013

APA (23 May 2014)

Market A$5.8 billion

capitalisation

S&P/ASX 50 MSCI All World Index; FTSE All World Index

836 million securities on issue

Assets owned/ Over $12 billion operated Gas transmission 14,120 km transmission pipelines Underground and LNG gas storage Gas distribution 25,000 km gas network pipelines 1.2 million gas consumers Other energy infrastructure 430 MW power generation[(1) ] 239 km HV electricity transmission Gas processing plants Employees More than 1,600 Operator Operator of APA’s assets and investments

• (1) Includes the Diamantina and Leichhardt power station developments

APA Group WA site tour 2014  5

National integrated infrastructure portfolio

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NT link to east coast grid:
Feasibility study
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APA’s east coast grid:
APA’s WA infrastructure:
Darwin > 7,000 km of pipelines
> 3,000 km pipelines
5 major pipelines
Gas transport and storage services
5 states and territories
Mining and south west regions
Mount Isa
Pilbara
region
Goldfields Gladstone
region
Brisbane
Perth
Sydney
Adelaide
Potential APA natural gas pipeline link
APA natural gas pipelines (including investments)
Other natural gas pipelines Melbourne
Gas resource Gas production
LNG export facility
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• West Australian infrastructure

• Pipelines serving mining regions

• Interconnected gas storage and transportation to Perth

• East coast grid

• Interconnected transmission pipelines operating as one system

• Seamless service capability across 30 receipt points and 100 delivery points

• Attractive growth and revenue opportunities

• NT pipeline link

– APA feasibility study: Connecting APA’s infrastructure to facilitate gas flow across regions

Seamless gas delivery and storage services

APA Group WA site tour 2014  6

APA’s long term strategy

Strategy is focused on our core business of gas pipelines – transmission and distribution infrastructure

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Facilitating development
Enhancing APA’s portfolio of gas
of gas related projects
infrastructure assets in Australia’s
that enhance APA’s
growing energy market
infrastructure portfolio
Capturing revenue and operational Pursuing opportunities that
synergies from APA’s significant asset leverage APA’s knowledge
and skills base
base
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Recent WA highlights

• Goldfields Gas Pipeline expansions

• Commissioning of the expanded Mondarra Gas Storage Facility

• Integration of the Pilbara Pipeline System

Strengthening financial capability

APA’s unrivalled asset portfolio across Australia and internal expertise, together with strong industry fundamentals, drive growth opportunities

APA Group WA site tour 2014  7

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APA Western Australia business overview

Rob Wheals Group Executive Transmission

APA Group WA site tour 2014  8

Western Australia portfolio – significant contribution

1H14 EBITDA by business segment

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Energy
Investments
9.6%
Asset
Management PILBARA
8.6% PIPELINE SYSTEM
Queensland
27.3%
Western
Australia &
Northern New South
Territory Wales
23.2% 15.6%
Victoria &
South Australia
15.6%
Energy Infrastructure
81.7%
APA assets
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Regulator skid at Newman Power Station

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Goldfields Gas Pipeline interconnect with
Dampier Bunbury Pipeline - Yarraloola
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Mondarra Gas Storage Facility
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APA Group WA site tour 2014  9

Western Australia portfolio – strategic infrastructure

Assets
Goldfields Gas Pipeline and Newman lateral (88.2%) Other laterals (100%) Commissioned 1996 1590 km – 2 receipt and 19 delivery points Capacity 175 TJ/d 6 compressor sites (11 units) Fully regulated for 108 TJ/d
Pilbara Pipeline System Commissioned 1996 329 km - 1 receipt and 7 delivery points Capacity 166 TJ/d
Parmelia Gas Pipeline and laterals Commissioned 1972 448 km - 5 receipt and 14 delivery points Capacity 65 TJ/d 3 compressor sites (5 units)
Mondarra Gas Storage Facility Expansion commissioned 2013 15 PJ commercial storage
Mid West Pipeline (50%) Commissioned 1999 363 km - 1 receipt and 3 delivery points
Kalgoorlie Kambalda Pipeline Commissioned 1996 44 km – 1 receipt and 1 delivery point Light regulation
Telfer Nifty Pipeline (19.9%) Commissioned 2004 488 km - 1 receipt and 2 delivery points
Emu Downs Wind farm Constructed 2006 80MW

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PILBARA
PIPELINE SYSTEM
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Operations

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APA assets
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• 185 employees across 9 operating bases

• Pipeline control centre

APA Group WA site tour 2014  10

WA gas infrastructure development

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BONAPARTE
BASIN
BROWSE
BASIN
CARNARVON CANNING
BASIN BASIN
Pilbara Pipeline
Telfer Nifty
Pipeline
Dampier
Bunbury
Pipeline Goldfields Gas
Pipeline
Mid West
PERTH
Pipeline
BASIN
Kalgoorlie Kambalda
Mondarra
Pipeline
Gas Storage
Facility Parmelia Gas
Kambalda
Pipeline
Esperance
Pipeline
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APA pipelines AGL pipelines (prior to APA float) Other pipelines

1960s

• Gas discovered and developed in the Perth Basin

• 1970s

• Parmelia Gas Pipeline constructed, delivering gas to Perth

• 1980s

• Development of the North West Shelf offshore gas fields

• Construction of Dampier Bunbury Pipeline

• Depletion of gas in Perth Basin

• 1990s

• Growth of LNG export facility

• Construction of Goldfields Gas Pipeline and Pilbara Pipeline, delivering gas to mining projects

• Construction of Mid West Pipeline and Kalgoorlie Kambalda Pipeline

• Dampier Bunbury Pipeline expansions 2000s

• APA Group formed

• Construction of the Telfer Nifty Pipeline

• Construction of the Kambalda Esperance Pipeline

• Goldfields Gas Pipeline and Dampier to Bunbury Pipeline expansions

• 2010s

• Goldfields Gas Pipeline and Dampier to Bunbury Pipeline expansions

• Mondarra Gas Storage Facility expanded

• More producing gas fields in the Carnarvon Basin

• Potential of offshore and onshore gas developments

APA Group WA site tour 2014  11

Successful strategy implementation in WA

WA revenue

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$200m
$150m
$100m
$50m
$0m
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2001 2004 2007 2010 2013
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2004

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• Foundation assets: Goldfields Gas Pipeline (39.7%) and Midwest Pipeline (50%)

• FY05 increased Goldfields Gas Pipeline interest to 88.2%, and acquired Parmelia Gas Pipeline and Mondarra Gas Storage Facility

• FY11 acquired Emu Downs Wind Farm

• FY13 acquired Pilbara Pipeline System

• FY14 Mondarra Gas Storage Facility expansion

• FY14 Goldfields Gas Pipeline expansions

• FY03 increased Goldfields Gas Pipeline interest to 48.5%

• FY07 acquired Murrin Murrin lateral

• FY09 Goldfields Gas Pipeline expansion

• ….

APA Group WA site tour 2014  12

WA business fundamentals

Abundant gas supply

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981 PJ
17,384 PJ
70,386 PJ
54
PJ
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• Significant gas reserves

• Proven and probable – 89,000 PJ[(1)] Contingent – over 300,000 PJ[(2) ]

• Questions about availability for WA ~~’s dom~~ estic market

Steady gas demand

• Steady domestic gas demand, increasing in mining regions

Strategic assets

• Well positioned long life assets

• Skilled and experienced workforce

Secure revenue

• Creditworthy customers

• Long term contracts and/or regulatory certainty

• Capacity based revenue contracts, relatively unaffected by volume variability

• Developing integrated and flexible services

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• (1) EnergyQuest February 2014

• (2) Australian Gas Resource Assessment 2012, BREE

APA Group WA site tour 2014  13

WA portfolio serving mining regions

Major gas pipeline infrastructure serving the Pilbara and Goldfields mining regions

Gas basins and operating mines near APA’s pipelines, WA

 Contract renewals

• Murrin Murrin Operations (GlencoreXstrata) - 15-year gas transportation contract for the Goldfields Gas Pipeline and lateral

• Capacity expansion

• Two expansion projects on the Goldfields Gas Pipeline – capacity increase of 28%, underwritten by 20-year and 15-year contracts

• Growth drivers

• New mine developments

• Existing mine expansions

• Existing mines reducing cost via fuel conversion from diesel to gas for power generation

Strategically located infrastructure

• Infrastructure is close to new and potential gas sources – Carnarvon, Gorgon and Canning basins

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Mines
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Iron ore
Copper
Nickel
Gold
Other Source: APA; Australian Mines Atlas
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APA Group WA site tour 2014  14

ons WA portfolio serving Perth and southwest regi

• Mondarra Gas Storage Facility providing gas supply security for Perth and the south west region

• Expansion completed mid 2013

• Connected to major pipelines

• Providing services to four customers, including Synergy

• Majority of capacity contracted – underpinned by 20 year contract with Synergy

• Providing flexible, integrated gas transport and storage services and competitive tariff structures

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Geraldton
Kalgoorlie
SOUTH WEST
INTERCONNECTED
Perth SYSTEM
(SWIS)
APA natural gas pipelines and assets
Other natural gas pipelines
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APA Group WA site tour 2014  15

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WA Transmission: mining regions

Steve Lewis General Manager WA Transmission

APA Group WA site tour 2014  16

Contents

• WA Market

  • Overview

  • Gas supply and demand

  • Current issues

• Mining region

• Goldfields Gas Pipeline

• Pilbara Pipeline System

• … after Mondarra Gas Storage Facility presentation

• South west region

  • Mondarra Gas Storage Facility and Parmelia Gas Pipeline

APA Group WA site tour 2014  17

WA market – overview

Economic growth is still healthy …

• WA Gross State Product (GSP) expected to grow at 3.8% from 2015

• Based on continuing growth in quantity of merchandise exports (6.5% increase in 201314) as new projects enter production phase

• Population growth at 3.5% pa with unemployment rate at 4.9% (March 2014)

… but investment is in decline

• Business investment in decline as current projects near completion are not replaced with new investment

• And the value of those exports has declined sharply with the largest annual fall in commodity prices in two decades

Source: WA Economic Profile – April 2014, WA Government Department of State Development

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APA Group WA site tour 2014  18

WA market – resources dependent

Resources continues to be the key growth driver

• The mining/resources industry accounted for 29% of WA’s GSP in 2012-13

• Resources projects committed or under construction totals $149 billion (March 2014)

• China remains WA’s key export market

• Iron ore and LNG dominate exports based on historically high commodity prices

• Resource owners searching for lower cost project development options

• Existing projects focused on brownfield expansions and reducing operating costs

Source: WA Economic Profile – April 2014, WA Government Department of State Development

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APA Group WA site tour 2014  19

WA market – gas supply

Abundant reserves

• WA proven and probable gas reserves total 89,000 PJ[(1) ]

• WA domestic gas use for 2012-13 was 326 PJ[(2) ]

• and 1,090 PJ[(1)] of gas was used for LNG export

But how much is available for the domestic market?

• Gas Reservation Policy requires 15% of reserves to be used in the WA domestic market

• NWS Project with capacity of 660TJ/d is more than 60% of available production capacity

• NWS has LNG alternative and has met WA State Agreement obligations to supply WA market

• Recently developed Reindeer field, plus Macedon and Gorgon Phase 1 gas projects domestic gas obligations will provide gas supply relief

• Shale gas development potential in Canning Basin for the longer term

• (1) EnergyQuest February 2014

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Gorgon
Reindeer
Macedon
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Source: WA Government, Department of Mines and Resources

• (2) Gas Statement of Opportunities, Independent Market Operator, January 2014

APA Group WA site tour 2014  20

WA market – gas demand

Gas demand increasing in mining regions …

• WA total gas demand expected to grow at 1.5–2% per annum to 2024

• This is low by historical standards but reflects significant gas price increases that commenced from 2005

• Gas demand in the south-west of WA has fallen since 2005 (power generation and mineral processing sectors)

• Gas demand in regional WA remains strong

• (mining sector)

• Reflects price elasticity of demand and alternatives

  • Coal (south west)

  • Diesel (mining regions)

… and demand remains for gas storage and transportation services that reduce costs and risks

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Source: Gas Statement of Opportunities, January 2014, Independent Market Operator

APA Group WA site tour 2014  21

WA market – gas industry developments

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• The good old days of low gas price are gone … but the market is adjusting to the price shift

• Gas supply reserves are aplenty … but gas availability depends on price

• Discussions continue on the future of domestic gas reservation and broadened gas specification

• WA energy market review underway with the government getting ready to hand generation and retail risk to the private sector

• A more liquid market emerging, with gas trading, gas storage and retail competition

IMO Gas Bulletin Board

APA Group WA site tour 2014  22

APA WA Transmission – mining regions

• APA infrastructure well placed to supply growing gas demand in mining sector

• Goldfields region

• Goldfields Gas Pipeline

• Mid West Pipeline

• Pilbara region

• Goldfields Gas Pipeline

• Pilbara Pipeline System

• Telfer Nifty Pipeline

 Secure long term revenue

• Creditworthy customers

• Long term take-or-pay, capacity based agreements

 APA also provides 3[rd] Party O&M services to customers laterals and gas delivery stations

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APA Group WA site tour 2014  23

Goldfields Gas Pipeline

Major Resource Projects – March 2014 (Goldfields region)

 Fully contracted until 2018

• Average contract term: >19 years

• Revenue mix

• Regulated 37%; unregulated 63%

Projects current or under development – production > $10m Proposed or potential projects – capex > $20m Projects under care and maintenance

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• Contract renewal continues

• Murrin Murrin Operations

• Discussions with other customers

• Pipeline expansions completion in FY14

• Rio Tinto and Mt Newman JV

 Customers

• – BHP Billiton Rio Tinto –

• – Murrin Murrin Operations Newmont –

• (GlencoreXstrata) Alinta

Growth opportunities

• Greenfield mines

• Brownfield expansion of mines

• Fuel conversion from diesel to gas for electricity generation and mine operation

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Goldfields Gas Pipeline

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Source: WA Government, Department of Mines and Resources

APA Group WA site tour 2014  24

Pilbara Pipeline System

• Acquired December 2012

• Integration complete – APA as operator

Major Resource Projects – March 2014 (Pilbara region)

• Capacity re-contracted after expiry of foundation contract

• Revenue preserved

• Additional capacity available

• Contracts average term: >10 years

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Pilbara
Pipeline
System
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• Multiple customers

• BHPB; Horizon Energy, Newcrest, Apache

• Supplying mines in the Pilbara and power stations in the North West Integrated System

• Successful completion of pipeline lowering

Growth opportunities

• Greenfield iron ore mines

• CNG opportunities

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Goldfields Gas
Pipeline
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Projects current or under
development – production > $10m
Proposed or potential projects –
capex > $20m
Projects under care and maintenance
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Source: WA Government, Department of Mines and Resources

APA Group WA site tour 2014  25

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Mondarra Gas Storage Facility

Aidan Trend Mondarra Asset Manager

APA Group WA site tour 2014  26

Contents

• Gas storage

• Use of gas storage

• Mondarra history

• Site suitability

• Concept development

 Reservoir modelling

 Drilling

• Construction

• Commissioning

 Operation

APA Group WA site tour 2014  27

Gas storage

 Three types of storage

• Pipeline storage – e.g. APA pipelines

• Above ground storage – e.g. Dandenong LNG Facility

• Underground storage – e.g. Mondarra Gas Storage Facility

• Most common type of underground gas storage site in Australia is depleted gas reservoirs

• The most important characteristics of a storage facility

• Volume capacity – the amount of natural gas that can be stored for future use

• Delivery rate – how quickly gas can be withdrawn

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Pipeline LNG storage Reservoir
Volume capacity Low Medium High
Delivery rate High High Medium
Long term storage
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Short term storage
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APA Group WA site tour 2014  28

Why gas storage is required

 Security of supply

• Back up gas supply in case of upstream events

• Multiple transport options

• Seasonal and short term services

• Management of peak demand

• Mitigates short term supply risks

• Take advantage of short term and spot market trading opportunities

• Support management of upstream and downstream assets

• Manage commissioning, ramp up and maintenance periods

 Flexible contracting

• Limit take-or-pay obligations through optimum (risk-weighted) level of firm supply and/or spot purchases and/or gas loan

• Allows arbitrage through periods of variable demand levelling production capacity and pipeline transport

WA Gas Supply and Emergency Management Committee established in 2008 to review and provide advice on the state’s gas supply security and gas supply disruptions management

APA Group WA site tour 2014  29

Underground gas storage

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• Storage provided by the depleted gas reservoir

• Gas is stored in the porous rock – sandstone, limestone

• Gas is kept in place by impermeable cap rock – shale, clay

• Gas is re-injected into the porous rock – like a ‘sponge absorbing water’

• Geological properties determine the characteristics of the reservoir

• Porosity – the capacity of the rock to hold gas

• Permeability – the ability of the rock to transmit gas

• Integrity – the ability to contain the gas

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• Surface facilities to inject and withdraw gas

• Compression

• Gas treatment

APA Group WA site tour 2014  30

Mondarra history

1968	Mondarra gas reservoir discovered by WAPET (West Australian Petroleum Pty Ltd)
1972 -1994	Mondarra produced 25 PJ of gas
1994	Converted to gas storage facility with limited capacity and interconnection
1997	CMS Energy Corporation acquired Mondarra and the Parmelia Gas Pipeline
2003	Mondarra upgraded to improve performance
2004	APA acquired Mondarra and Parmelia Gas Pipeline as part of the CMS acquisition
2006	APA expanded Mondarra capacity with an additional well and compression upgrade
January 2008	Perth energy crises following the North West Shelf Group Dampier Domgas outage and
June 2008	the Varanus Island explosion
2010	APA sub surface appraisal to underpin expansion
May 2011	Long term foundation contract signed with Synergy (previously Verve Energy)
July 2013	Expanded facility commenced commercial operations
	Providing storage and transport services for Synergy and other Western Australian
	customers

APA Group WA site tour 2014  31

Site suitability

 Strategically located

• Intersection of WA’s two major pipelines

• Both pipelines feed the Perth market

• Appropriate gas reservoir

• Size allows gas volume stored to mitigate short term security of supply risk without needing large volumes of cushion gas

• Excellent reservoir characteristics of permeability and integrity

 APA ownership and operation

• Commercially operated – open access

• Provide a suite of tailored services – storage and transportation – to meet customer requirements

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Mondarra is one of two commercial storage facilities in Australia

APA Group WA site tour 2014  32

Location

APA Group WA site tour 2014  33

Concept development

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Flow rate Sub-surface

Stored Volume Reservoir capacity?
Tariff  How many wells?
 Pressure?
 Water production etc.
Commercial
 Perth gas crises in 2008
 Gas Supply and Emergency 150 TJ/day
Management Committee
recommendation – storage
 Customer demand Plant design
inputs
Surface Plant
 Engineering
$$$  Plant capability
 Cost
 Schedule
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APA Group WA site tour 2014  34

Sub-surface studies

• Build of 3D static and dynamic simulation reservoir models

• Rock mechanics studies ensured competent rock in reservoir during pressure cycling

• Seismic reprocessing and quantitative interpretation to identify high porosity reservoir sections

• Geophysical review

• Extensive drilling fluid design studies

• The challenge was to drill into a depleted reservoir with minimal fluid loss and skin damage

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Reservoir key facts
Reservoir depth	2,700 m
Reservoir thickness	50 m
Porosity	Up to 18%
Reservoir temperature	120° C
Maximum reservoir pressure	4,100psi (28.3MPa)
Original gas in pace	25PJ
Commercial storage	15PJ
Injection and withdrawal wells	3

APA Group WA site tour 2014  35

3D static reservoir model

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

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 Predictive tool to identify drilling locations

 Basis for dynamic simulation model

APA Group WA site tour 2014  36

Dynamic reservoir model

• Production history matched

• Forecasting of reservoir performance

• Predictive tool for future operational scenarios

APA Group WA site tour 2014  37

Drilling

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• 2 well drilling campaign commenced September 2010

• Successful drilling of 2 new gas storage wells

• Validated reservoir models

• Underpinned major expansion project

APA Group WA site tour 2014  38

Plant design

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APA Group WA site tour 2014  39

Construction

 15 months from construction mobilisation to practical completion

 Size and complexity of plant

• 28 ha site

• 3,300 m[3 ] concrete

• 10.5 km pipe

• 1.1 km duplex pipe, mainly class 2500

• 129 km cable

• 1200 valves

• 300 people on site at peak construction

• Logistics, camp, IR challenges

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APA Group WA site tour 2014  40

Compressors

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• 70 TJ/day injection rate

• Up to 150 TJ/day withdrawal rate

• Flow range 10 to 150 TJ/day

• Pressure range 4,500kPa to 23,500kPa

• 2 x Cat 3612 engines driving Aerial recip. compressors. – 3500 HP each

• Compressors used for both injection and withdrawal

• Vibration! - foundations 1.8m thick

APA Group WA site tour 2014  41

Compressor lifts

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• Compressor skid weight 160 tonnes each

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 Custom lifting arrangement required as the lift was outside the capacity of any available crane

APA Group WA site tour 2014  42

Commissioning

 Large and complex plant:

• Over 2000 I/O’s

• 14 different modes of operation

• Complex control system

• 332 transmitters

• 1,200 valves

 Balancing:

• Technical requirements of commissioning

• Well performance testing

• Commercial desire to commence services

• Early commissioning of injection side of plant to inject cushion gas

• Day time commissioning, night time injection of cushion gas

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APA Group WA site tour 2014  43

Earthworks – February 2012

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APA Group WA site tour 2014  44

Construction progressing – June 2012

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APA Group WA site tour 2014  45

Ariel overview – October 2012

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APA Group WA site tour 2014  46

Construction nearing completion – January 2013

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APA Group WA site tour 2014  47

Finished site – July 2013

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APA Group WA site tour 2014  48

Mondarra – how it works “injection”

Gas is injected into the reservoir via three wells

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APA Group WA site tour 2014  49

Mondarra – how it works “withdrawal”

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Gas can be
withdrawn
from the
reservoir via
To PGP
three wells
To DBNGP
and
transported
through one
or both of the
pipelines
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APA Group WA site tour 2014  50

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WA Transmission: south west region

Steve Lewis General Manager WA Transmission

APA WA Transmission – south west region

• South west region gas market

• Power generation

• Large industrial users

• Retail/commercial

• Parmelia Gas Pipeline and Mondarra Gas Storage Facility provide gas supply security for Perth and the region

• Mondarra expansion completed mid 2013

• Connected to major pipelines

• Providing services to four customers, including Synergy

• Majority of capacity contracted – underpinned by 20 year contract with Synergy

• Able to offer flexible, integrated gas transport and storage services and competitive tariff structures

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Mondarra and Parmelia services

 Storage services:

• Flexible approach: services tailored to suit customer requirements

Injection	Firm	As available
Storage	Firm	As available
Withdrawal	Firm	As available

 Transport services

• Access to swaps and other secondary market transport options

 Gas loan service

• Provides access to up to 100TJ of gas per customer in an emergency

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Mondarra commercial offer

FIRM

FLEXIBLE

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Withdrawal
Storage
Injection
Capacity
 Firm service  Flexible services
= security of supply = manage shutdowns, commissioning,
peak periods, banked gas
= flexible contracting (minimise Take-
or-Pay)
Customer 3
Customer 1 Customer 2 Customer 4 Customer 5
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Flexible services – customer focus

Current contracts

Offer intent

• Sectors include Power Generation, Gas Retail, Industrial/Minerals Processing

• Increasing services:

  • Flexible, tailored services

• Currently ~33% of domgas users (by volume) have Mondarra contracts

• Gas loan

• Increasing reach:

• Secondary market transport

Prospects

• Swaps

• As above + Mining + Oil/Gas

• Offers made to the majority of domgas users (by volume)

• Increasing liquidity:

  • WA spot gas market (MGSF one of two locations under consideration in IMO report to GAB)

• Ongoing discussions with potential customers

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Flexible contracting

Gas usage (TJ/day)

• Typical gas usage in a gas fired power station fluctuates

• Gas is contracted to match required high daily quantities (MDQ)

• Storage provides buffer for low and high demand periods

• Injection in low demand periods (orange) and withdrawal in high demand periods (red)

• Customers are then able to contract gas supply at average daily quantities (DCQ)

• Reduces customers overall gas costs & provides flexibility

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MDQ
DCQ
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Delivering supply security

• NWS currently provides 55% of WA’s domestic gas supply (actual WA Gas Bulletin Board data May23rd). NWS domestic gas plant is now in its 30[th] year of operation having been commissioned in 1984.

• Synergy receives 165 TJ/d under existing NWS contract used for power generation in the SWIS

• NWS required to maintain infrastructure which could cause supply restrictions (or unplanned outage as experienced in 2008)

• Synergy is now able to withdraw up to 90TJ/d from storage to mitigate the risk of loss of upstream gas supply & maintain power generation to commercial, industrial and residential users in the SWIS. For example, APA recently provided 50TJ of unscheduled gas withdrawal services to meet Synergy’s daily power generation needs.

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• This meets a key recommendation of the Gas Supply & Emergency Management Committee set up by the WA Government in the wake of the Varanus crisis to ensure security of energy supply to WA.

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Mondarra Gas Storage Facility site tour

Aidan Trend Mondarra Asset Manager

Mondarra site plan

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Evaporation
pond
Compressors
Production cooler
Production separator
Silica gel gas
conditioning system Wellhead slug
catcher/separator
Mondarra site
pre expansion Dampier Bunbury
Pipeline interconnect
Parmelia Gas Pipeline
wells
interconnect
APA Group WA site tour 2014  59
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Disclaimer

This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) ( APA Group ).

Summary information: This presentation contains summary information about APA Group and its activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete. It should be read in conjunction with the APA Group’s other periodic and continuous disclosure announcements which are available at www.apa.com.au.

Not financial product advice: Please note that Australian Pipeline Limited is not licensed to provide financial product advice in relation to securities in the APA Group. This presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire APA Group securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult an investment adviser if necessary.

Past performance: Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance: This presentation contains certain “forward-looking statements” such as indications of, and guidance on, future earnings and financial position and performance. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

This presentation contains such statements that are subject to risk factors associated with the industries in which APA Group operates which may materially impact on future performance. Investors should form their own views as to these matters and any assumptions on which any forward-looking statements are based. APA Group assumes no obligation to update or revise such information to reflect any change in expectations or assumptions.

Investment risk: An investment in securities in APA Group is subject to investment and other known and unknown risks, some of which are beyond the control of APA Group. APA Group does not guarantee any particular rate of return or the performance of APA Group.

Not an offer: This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security.

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