APLNG joint venture partners and APA signed the 20 year Gas Transportation Agreement yesterday for the 50 km Reddy Creek Wallumbilla Pipeline.
The bi-directional pipeline, with a capacity of 300 TJ/d, will start at the APLNG’s Reedy Creek site and take the shortest route between the facilities and the Hub, securing direct market access.
The $80 million pipeline will expand on APA’s existing 7,500 km East Coast Grid; the company will also construct the associated connection and compression facilities.
APA Group Managing Director Mick McCormack said “This new greenfield pipeline continues APA’s growth focus with another strategic energy infrastructure asset underwritten by a long-term contract with a highly creditworthy counterparty. It is always very pleasing to further our relationships with existing customers and offer additional services and facilities to add value to and enhance their operations.”
APLNG is the largest producer of natural gas in eastern Australia, currently providing approximately 25 per cent of domestic gas to the east coast market. It is a joint venture between Origin Energy (37 .5 per cent), Conoco Phillips (37.5 per cent) and Sinopec (25 per cent).
APLNG CEO Page Maxson, said “We are pleased to announce this long-term agreement with APA Group, a significant owner of east coast gas transportation infrastructure. APLNG’s strong reserve position provides flexibility and, given Wallumbilla Hub’s position as a strategic point in the East Coast gas market, this new pipeline will provide us the opportunity to participate flexibly and fully in Australia’s dynamic gas market.
“As one of Australia’s main suppliers of domestic gas, APLNG supports the work that the COAG Energy Council, AEMC and AEMO have done in establishing and working with industry to ensure the Hub’s success.”
