APA will acquire 100% of the Parmelia business, including the 420-km pipeline which supplies gas from the Perth Basin, associated gas-processing and storage infrastructure, and a small gas retail business. APA will also acquire CMS’ 45%interest in SCP No 1 Pty Ltd, an Australian technology company which is already 55% owned by APA; SCP owns 88.2% of the 1380-km Goldfields gas transmission pipeline (GGT) in NW Western Australia, and the acquisition will give APA operating control of GGT.
APA’s managing director Jim McDonald said: ”The acquisition of these assets is right on strategy for APA and we believe we’ve got them at a fair price. These pipelines will strengthen our core business, and the acquisition of Parmelia will allow us to move into gas storage and processing businesses, which is what we have said we intended to do. Parmelia delivers gas to industrial areas of Perth and has storage facilities to allow peak supply to the Perth region.
“The Goldfields Gas Transmission pipeline serves a world-class mineral province and is fully used in the short term, and there are plans to add capacity via compressors. We have repeatedly said that we will maintain our growth rates and build our business by acquiring other transmission lines and ensuring that our existing pipelines are filled. Our success today is a significant step along that path.”