Energy infrastructure company APA Group has signed a deal with Cooper Energy to buy the Orbost gas processing plant in Victoria, Australia, as part of a $270m project.
Under the agreement, APA will upgrade and operate the Orbost gas processing plant, and process natural gas from the Sole gas field.
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Located about 375km east of Melbourne on the Victorian east coast, the plant will be connected to the Sole gas field through a sub-sea pipeline and control umbilical to be constructed by Cooper Energy.
APA Group managing director Mick McCormack said: “This project fits our successful and sustainable investment criteria, as it is an energy infrastructure asset that is underwritten by a long-term contract and meets our return criteria.
“It leverages our current skills in gas processing and compression facilities and our expertise in the midstream infrastructure sector.”
A provision has been incorporated in the deal, through which the plant will process gas from Cooper Energy’s nearby Manta gas field.
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By GlobalDataAn existing pipeline connection to Patricia-Baleen and Longtom gas fields can also deliver gas for processing, subject to agreements with the owners and requisite approvals.
The completion of the transaction is subject to Cooper Energy completing a debt raising and making a final investment decision on the Sole gas project and obtaining requisite approvals.
Upon closure of the deal, the project is scheduled for completion in 2019.
APA has a growth opportunities outlook of $1.5bn over the next three years, with $300m coming from expansions in the midstream infrastructure sector.
