Australian natural gas infrastructure company APA Group has signed an agreement to build a new gas transmission pipeline between the company’s Wallumbilla Hub and the Australia Pacific LNG (APLNG) Pipeline at Reedy Creek with an investment of A$80m ($54m).
With the new Reedy Creek Wallumbilla Pipeline (RCWP) in place, APA will be able to expand its 7,500km East Coast Grid by another 50km.
The pipeline provides a vital link to the Wallumbilla Gas Hub and will be designed, built, owned and operated by APA.
Under the agreement, the company will also build the associated connection and compression facilities.
APA has signed a contract with Australia Pacific LNG Marketing for providing a bi-directional service of up to 300 terajoules a day on the new pipeline for 20 years.
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.
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By GlobalData“It is always very pleasing to further our relationships with existing customers, as well as offer additional services and facilities to add value to and enhance their operations."
Construction of the pipeline is set to begin next year after securing the required development approvals and access arrangements, and commission is expected to be around the middle of 2018.
Australia Pacific LNG CEO Page Maxson said: “Australia Pacific LNG’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 with the opportunity to participate flexibly and fully in Australia’s dynamic gas market.”
