APA launches ethane pipeline takeover bid

The Ethane Pipeline Income Fund, whose core asset the Moomba to Sydney Ethane Pipeline, has received a takeover bid from APA Group for around $130.3 million. APA Group already has a 6.08 per cent share in the Moomba to Sydney Ethane Pipeline, which supplies ethane from the Cooper Basin to Qenos’ Botany ethylene plant. The …

The Ethane Pipeline Income Fund, whose core asset the Moomba to Sydney Ethane Pipeline, has received a takeover bid from APA Group for around $130.3 million.

APA Group already has a 6.08 per cent share in the Moomba to Sydney Ethane Pipeline, which supplies ethane from the Cooper Basin to Qenos’ Botany ethylene plant.

The Ethane Pipeline Income Fund, having appointed an Independent Board Committee to consider the offer, is recommending that its shareholders accept the offer from APA Group.

APA Group Chairman Len Bleasel told the Australian Financial Review that APA is best placed to offer full value for security holders in the fund.

“The addition of the Ethane Pipeline to APA Group’s portfolio of assets will extend and further diversify APA Group’s investment in related energy infrastructure,” said Mr Bleasel.

“It also enables APA Group to expand our footprint into transporting alternative fuels, including potentially liquids in the longer term, enhancing our position as an infrastructure owner in Australia’s growing energy markets.”

The 1,375 km, 219 mm diameter Moomba to Sydney Ethane Pipeline was constructed between 1994 and 1996 by the Commonwealth Pipeline Authority under a contract with East Australian Pipeline Ltd, and has an average operating capacity of 275,000 t/a of ethane.

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