Australian APA Group Inks New Gas Transportation Contract with AGL

Australian APA Group has entered into a new 3-year multi-asset, multi-service gas transportation contract with AGL Energy. This will replace a contract with AGL on the Moomba-Sydney pipeline that expires on December 31, 2016.

“The new contract reflects the interconnected nature of APA’s East Coast Grid and the flexible services that APA is now able to provide on the Grid,” the company said December 20. APA expects the new contract to support its evolving gas portfolio on the east coast and the changing transportation needs.

“By replacing a point-to-point, Moomba to Sydney delivery contract with bi-directional and multi-asset transportation contract, AGL is able to dynamically manage its gas portfolio and respond to market signals quickly,” APA Group managing director, Mick McCormack, said.

The contract is worth approximately A$40mn (US$29mn)/yr. It includes significant bi-directional capacity on APA’s East Coast Grid, which offers AGL continued haulage capabilities to service its needs, APA said.

AGL is one of Australia's leading integrated energy companies while APA Group is the largest gas infrastructure services provider. 

Shardul Sharma