Australia's APA commits $492 million for key gas pipeline project

By Reuters News

Oct 22 (Reuters) - Australia's APA Group APA.AX on Thursday approved an A$700 million ($491.6 million) investment in the Bulloo Interlink Pipeline, a major east coast gas project aimed at easing forecast supply shortages in southern Australia.

Here are the details:

  • The final investment decision covers construction and commissioning of the pipeline, taking APA's total commitment to the project to about A$920 million, including A$220 million of early works approved in February

  • Construction is set to begin in early 2027, with commercial operations targeted for the winter of 2029, subject to regulatory approvals, the energy infrastructure firm said

  • The pipeline forms Stage 3B of its East Coast Gas Grid expansion plan, APA said

  • "The BIL is designed to ensure pipeline capacity is not a constraint to meet projected gas demand for Australia’s southern states later this decade and into the early 2030s," said APA Chief Executive and Managing Director Adam Watson.

  • APA said it had signed a five-year, take-or-pay, inflation-linked gas transportation and storage agreement with Origin Energy ORG.AX

  • The agreement includes summer and winter capacity on the firm's key east coast assets, including the South West Queensland Pipeline, Moomba to Sydney Pipeline and the BIL, once commissioned

  • Shares of APA and Origin Energy were trading flat in early trade

($1 = 1.4239 Australian dollars)

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