New Gas Transport and Storage Services Agreement on APA's East Coast Grid
The new agreement, which has services commencing in September 2015, is for an initial term of seven years with an option for up to a further three years, making use of available pipeline capacity and without further significant capital investment by APA. The agreement provides for flexible gas transportation services from multiple receipt and delivery points on the grid - in particular utilising the Moomba Sydney Pipeline - as well as gas storage services. The total minimum revenue for the initial term exceeds $80 million.
APA Managing Director Mick McCormack said, "Our interconnected grid on the east coast is opening up a new range of services and providing shippers with new flexibility in how they manage their upstream and downstream portfolios.
"Against the backdrop of a very dynamic gas market in the south east of Australia we are optimising the use of our existing assets, such as the Moomba Sydney Pipeline, as well as progressively developing our infrastructure and services in response to the requirements of our customers and the market."
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About APA Group
APA Group (ASX:APA), formerly Australian Pipeline Trust Limited, owns gas transmission pipelines located throughout Australia and a gas distribution network in south east Queensland and northern New South Wales. The Company undertakes the sale of transportation and related services to the producers, consumers and aggregators of gas through these gas transmission and distribution pipelines. In addition, APA owns two coal seam gas (CSG) processing plants, a gas-fired power station, gas storage facilities and two high voltage direct current interconnection systems, including underground transmission cables. APA owns over 12,000 kilometers of gas transmission pipelines and over 21,400 kilometers of gas distribution networks throughout Australia. In February 2007, the Company acquired the DirectLink electricity transmission assets linking the New South Wales and Queensland power grids. In July 2007, the Company completed the acquisition of the Origin Energy Networks assets.