The QCLNG pipeline is a key component of the QCLNG Project, linking gas fields in the Surat Basin to the Project’s LNG plant on Curtis Island.
Under gas transportation agreements, QCLNG pipeline revenues are fully contracted with BG Group entities and a China National Offshore Oil Corporation (CNOOC) owned entity on a 20 year take-or-pay basis with primary tariff components escalated annually at US CPI.
The acquisition represents a FY2016 EV/EBITDA multiple of approximately 13 times and is operating cash flow per security accretive, in the order of 10 per cent, from the first full year of ownership.
APA intends to raise $A1,839 million through a fully underwritten pro-rate accelerated entitlement offer to partly fund the acquisition.
The balance of the consideration will be funded from a $US4,100 million syndicated bank bridge debt facility.
Following the acquisition, APA expects to maintain its current credit ratings.
APA Managing Director Mick McCormack said “the acquisition of the QCLNG pipeline further enhances APA’s position as Australia’s largest owner of gas transmission pipelines and builds on APA’s strategy of expanding its revenue base and east coast grid.”
