APA Group is set to bring in a co-investor to boost its bid for Origin Energy’s Darling Downs water and gas pipelines in Queensland, according to the Australian Financial Review (AFR).
The AFR’s Street Talk section is reporting that APA will team up with Japanese investment firm Marubeni on an approximately $300 million bid, with Marubeni providing the majority of the bid and APA acting as operator.
The Darling Downs system includes 292 km of gas pipelines in the Surat Basin in Queensland, which supplies the company’s Darling Downs Power Station, as well as the Australia Pacific LNG (APLNG) Project which began exporting LNG in January 2016.
Other Interested companies in the two pipelines are rumoured to be QIC Limited, TransAlta and Jemena.
The AFR reports that Origin is expecting make between $300–400 million on the sale, and is expecting to receive binding bids next month.