Australian natural gas infrastructure firm APA Group has completed the acquisition of 543km of liquefied natural gas (LNG) pipeline network from British oil and gas firm BG Group for $4.6bn.
The acquisition of Queensland Curtis LNG pipeline would offer first full year EBITDA contribution of around $355m.
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It connects BG’s natural gas fields to the Queensland Curtis LNG export facility in Queensland state.
The Australian firm has renamed the pipeline to the Wallumbilla Gladstone Pipeline (WGP) to mark completion of the purchase deal.
APA managing director Mick McCormack said: "We are very pleased to have completed this acquisition which extends the footprint of our east coast gas grid to over 7,500km across eastern Australia and represents APA’s largest ever pipeline acquisition.
"We have also gained two significant global customers in BG Group and China National Offshore Oil Corporation (‘CNOOC’) as part of this transaction and we look forward to further developing our relationship with each of them."
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By GlobalDataBG has decided to sell the LNG pipeline network last year, in order to repay its financial obligations in the market and meet development commitments.
The deal, which was initially announced in December 2014, will be funded through the sale of $1.53bn APA shares.
Mick McCormack was quoted by Bloomberg as saying: "APA is a growth business, and gas pipelines are core strength of ours.
"Any asset that’s called a pipeline and that’s for sale, you will find APA interested."
Image: BG decided to sell the LNG pipeline network last year to pay off its debts. Photo courtesy of BG Group.
