Empire Energy, APA team up for midstream gas infrastructure expansion
Sydney-listed Empire Energy has signed an initial agreement with APT Management Services, a unit of infrastructure business APA Group, to establish midstream gas infrastructure early works and partnering agreements, Empire said on August 8.
Central to this agreement is APA Group's commitment to inject up to A$5mn ($3,3mn) in engineering and design concepts for midstream gas infrastructure facilities. These facilities will be associated with Empire's Carpentaria pilot project in Northern Territory's Beetaloo sub-basin, which envisions the development of a midstream infrastructure with the capacity to transport 25 terajoules (TJ)/day of gas to the market.
In return for its investment, APA Group secures the exclusive rights to become Empire's strategic midstream gas infrastructure partner.
The infusion of capital from APA Group is projected to have a transformative effect on Empire's financial outlook, significantly mitigating the capital expenditure requirements for the initiation of commercial production, the company said. A final investment decision for the pilot project is anticipated later this year, with the prospect of initial gas sales making their debut in the first half of 2025.
In the first stage, Empire's early works activity will focus on facilitating the construction of gas gathering, processing, compression, and associated midstream infrastructure for the Carpentaria pilot project.
In the second stage, the collaboration's momentum extends to the potential construction of a Beetaloo sub-basin pipeline connecting to the Australian east coast markets. This pipeline proposal capitalises on APA Group's existing Carpentaria gas pipeline infrastructure.
This pipeline concept boasts the potential to cater to the energy demands of the region, Empire said, potentially exceeding 500 TJ/day. Funding for this pipeline project hinges on the successful execution of comprehensive long-form agreements.
A partnering agreement, currently pending approval from both Empire and APA Group, will govern the broader and longer-term dynamics between the two entities beyond the initial pilot project phase.
Empire in May this year announced an upgrade to the EP187 contingent and prospective resources. The EP187 tenement, located in the Northern Territory’s Beetaloo sub-basin, holds the Carpentaria and is 100% owned and operated by Empire.