Australia Pacific LNG Eyes East Coast Volume Growth with APA Pipeline Agreement

Australia Pacific LNG (APLNG) on September 6 said it has signed a 20-year gas transportation agreement with APA Group which will see the latter build and operate a pipeline from the APLNG network directly to the Wallumbilla gas supply hub.

New pipeline deal is likely to help APLNG capture additional value in domestic east coast gas market. APA Group is a significant owner of east coast gas transportation infrastructure.

"APLNG'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 the opportunity to participate flexibly and fully in Australia's dynamic gas market," APLNG CEO, Page Maxson said.

APLNG is the largest producer of natural gas in eastern Australia, providing about a quarter of the gas to the east coast market.

APLNG is an incorporated joint venture between ConocoPhillips (37.5%), Origin Energy (37.5%) and Sinopec (25%). The project includes the development of coal seam gas resources in the Surat and Bowen Basins, a 530 km transmission pipeline, and a multi-train LNG facility on Curtis Island, near Gladstone, Queensland.

Shardul Sharma