APA GROUP — Investor Presentation 2015

Mar 25, 2015

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ASX ANNOUNCEMENT

26 March 2015

APA Group (ASX: APA)

(also for release to APT Pipelines Limited (ASX: AQH))

APA Group Presentation

The APA Group Australian Domestic Gas Outlook Conference presentation is attached for release.

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Mark Knapman Company Secretary Australian Pipeline Limited

For further information please contact:

Investor enquiries: Media enquiries: Yoko Kosugi David Symons Telephone: (02) 9693 0049 Telephone: (02) 8306 4244 Mob: 0438 010 332 Mob: 0410 559 184 Email: yoko.kosugi@apa.com.au Email: media@apa.com.au

About APA Group (APA)

APA is Australia’s largest natural gas infrastructure business, owning and/or operating in excess of $12 billion of energy infrastructure 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 a number of energy infrastructure enterprises including SEA Gas Pipeline, Energy Infrastructure Investments and GDI.

APT Pipelines Limited is a wholly 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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Connecting opportunities Linking Australia’s gas markets for improved energy security

Rob Wheals, Group Executive Transmission Australian Domestic Gas Outlook Conference, Sydney 26 March 2015

About APA Group

APA is Australia’s largest gas infrastructure business

Core business areas:

 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

• 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

APA is an integrated operating business with direct management and operational control over its assets and investments

APA overview

Market A$10.2 billion capitalisation[(1)] S&P/ASX 50 – top 30 MSCI All World Index; FTSE All World Index

Assets owned/ Over $12 billion[(2) ] operated Gas transmission

14,200 km[(2)] transmission pipelines Underground and LNG gas storage Gas distribution

27,100 km gas network pipelines 1.3 million gas consumers

Other energy infrastructure 585 MW power generation 244 km HV electricity transmission Gas processing plants

Employees More than 1,600

(1) As at 27 Feb 2015 (2) Excludes 543 km QCLNG Pipeline acquisition - financial close is expected Q2 CY2015

APA Group, March 2015  2

APA – Australia’s largest gas infrastructure business

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Latest acquisition:
QCLNG Pipeline
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APA Group, March 2015  3

APA in the Northern Territory and east coast

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East coast grid

• 7,000 km across

• 5 states/territories

• Configuring pipelines to operate as a single network system

• Multiple receipt and delivery points

Northern Territory

• 2,000 km gas pipelines

• Long term presence in the Northern Territory – since 1980’s with NT Gas until 2011

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APA Group, March 2015  4

East coast gas market - changing dynamics

 Significant changes happening in the market right now

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 Increased LNG demand  World commodity prices  Changing/variable sources of gas  Access to multiple receipt and delivery points  Shorter gas sales agreements  Market trade and arbitrage opportunities  Government policy - NSW election - NT Government

Gas flows Gas supply

APA Group, March 2015  5

East coast gas market – supply challenges

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• More than tripling of east coast demand due to LNG exports

• Supply sufficient for east coast demand for ~ 20 years

• BUT does not allow for any increase in demand, or any decline in reserves, or any demand beyond 20 years

East Coast Australia-Gas Reserves (2P) [in PJ]

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Surat-Bowen Bass, 229 Otway, 681
Conventional,
Gippsland, 3,327
131
Cooper, 1,586
NSW, 1,375
Surat-Bowen
CSG, 41,891 Surat-Bowen CSG reserves
= 85.1% of East Coast 2P reserves
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Source: AEMO Natural Gas Forecasting Report 19 December 2014 (‘Medium’ Case)

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Source: Queensland Department of Natural Resources and Mines, Coal Seam Gas Reserves to 30 June 2014

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Gas supply - where is it coming from?

NT

200 TCF[(1)] of gas resources (1TCF ≅ 1,000 𝑃𝐽 ) Producing assets and unconventional gas

QLD

Surat-Bowen - CSG (41,891 PJ)

• conventional (118 PJ)

SA

Cooper - conventional (1,463 PJ)

• unconventional (5 PJ)

• other (118 PJ)

VIC

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Conventional - Gippsland (3,327 PJ)

• Bass (229 PJ)

• Otway (681 PJ)

NSW

Clarence-Moreton and Gunnedah - CSG (1,375 PJ)

• (1) NT Government media release 19 February 2014. Potential reserves of approximately 240 TCF across 6 basins .

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Gas market - what has APA been doing?

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
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Receipt & delivery points
Gas supply
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APA responds to what the market wants

• One GTA - seamless service and flexibility

• Improved and new services are being offered – Hub services

• Capacity-trading

• In-Pipe trades

• Bi-directional flow

• Increased compression / capacity

• – Storage

• Greater transparency

• Infrastructure opportunities

• NSW gas

• NT Link

• Further Victoria to NSW expansion

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NT link background and government process

Darwin

Strategic initiative to connect NT to APA’s east coast gas grid

 Flexible energy supply across the system, regardless of input/exit points

Timetable

 Feb 2014 - APA announced feasibility study for NT Link project and $2m commitment

Gladstone

 Oct 2014 - NT government receives COAG support for the connection

• Nov 2014 - NT government calls for EOI

Moomba

Brisbane

 Dec 2014 - APA included in NT government’s shortlist of 11 bidders

pipelines s pipelines

Adelaide

Sydney

• Mar 2015 - 9 Requests for Initial Proposals were received with preferred proponents to be announced by end March

 Sep 2015 - Final Request for Proposal to close

Melbourne

APA Group, March 2015  9

APA Feasibility study update

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Infrastructure

• Preliminary assessment of several possible pipeline routes

• evaluating environmental considerations

• determining whole of project construction cost estimates

• route flyovers commenced (August 2014)

• Detailed engineering

• 3 pipeline routes modelled

• infrastructure requirements in process of being defined

Commercial

• Discussions with large downstream users on east coast

• Discussions with major upstream producers & juniors/explorers

Government

• Ongoing dialogue with government (Fed, State and Territory) and other stakeholders

APA Group, March 2015  10

Pipeline route options

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Darwin
Gladstone
Moomba Brisbane
Sydney
Adelaide
Melbourne
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	Option A	Option B	Option C
Location to:	Mount Isa	Moomba	CGP
Length:	600 km	1,175 km	700 km
Water crossings:	6	11	9
Flood:(1)	25,000	352,000	117,000
Rock/ outcrops:	35-45km	25-35km	50-60km

(1) Susceptibility to flooding – km[2] catchment upstream

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NT Link challenges

Commercial

• Competitive delivered gas price

• Bankable gas reserves

• Time frame

• “Critical mass” market volume

• Gas specification

• Current low oil price

Water crossings and floodplains

Physical

• Water crossings and floodplains

• Rock / outcrops

• Environmental and cultural considerations

• Logistics of remoteness

• People, communications, transport of materials

• Landholder engagement

Rock / outcrops

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Conclusion – Connecting Opportunities

• Dynamic east coast gas market

• Interconnected grid gives APA ability to respond to market needs

• APA has a long history of successful infrastructure development

APA’s unique offering

• APA can deliver a whole of system approach, leveraging the network capability from interconnected infrastructure

• APA has appropriate capability, expertise and resources to fully develop new connections and services

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Questions

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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.

APA Group, March 2015  15

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For further information contact Delivering Australia’s Energy Rob Wheals Group Executive Transmission APA Group Tel: +61 2 9693 0000 E-mail: rob.wheals@apa.com.au

or visit APA’s website www.apa.com.au

APA Group, March 2015  16