APA Group has signed a new multi-service gas transportation agreement to support further capacity expansion of the Victoria – New South Wales Interconnect.

The new agreement provides for the delivery of gas sourced from Victoria to the gas market in eastern Australian and is for a term of seven years. The expansion project will require looping on both the Moomba Sydney Pipeline and the Victorian Transmission System. The total cost of the expansion is expected to be approximately $85 million and will increase the daily capacity of the Victoria – New South Wales Interconnect by 30 TJ. Project works have commenced and construction is expected to be completed by the middle of calendar year 2016.

APA Managing Director, Mick McCormack said, “We continue to develop our gas infrastructure to meet our customers’ needs. This agreement is the fourth we have reached which collectively will treble capacity of the Victoria – New South Wales Interconnect since September 2013 and is a result of APA working with our customers to connect their gas resources to their markets. This expansion, together with continued investment in APA’s East Coast Grid, demonstrates the value and benefits our seamless and flexible services across eastern Australia provide to our customers.”

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