APA Group (APA) has signed an extension to an existing East Coast Grid Gas Transportation Agreement (GTA).
The terms of the extension are consistent with the expiring GTA terms and APA’s current pricing methodologies.
The contract extension provides for southerly services on APA’s East Coast Grid for an additional two years when the existing contract expires on 31 December 2018.
The extension is expected to generate approximately $38 million of revenue over the two year period and also includes a further one year extension option.
APA Managing Director, Mick McCormack, said, “It is always pleasing to make announcements such as this one, where we have worked closely with an existing major customer to provide cost effective services and the flexibility required to help them meet their gas transportation needs. We are always looking at ways to add value for our customers so as to optimise their energy needs.”
“APA has invested significantly in developing the East Coast Grid which has in turn enabled our customers to benefit from an extensive network of gas pipeline infrastructure up and down eastern Australia that provides the flexibility required in the dynamic gas market we’re now operating in.
“If we can help our customers grow their businesses by providing smart and flexible solutions that assist them to meet the requirements of their own customers and energy portfolios, then that further supports our investment in bringing together the grid. Currently, APA is in the midst of around $1.3 billion plus of further committed growth capital projects, the vast majority of which are for existing customers wanting new energy solutions.”