APA Group announced progression of Stage 3 of its East Coast Gas Grid (ECGG) Expansion Plan, which is expected to add approximately 30 per cent additional transport capacity and address projected southern market gas shortfalls from 2028.
When Stage 3 is completed, APA will have added more than 50 per cent capacity to the East Coast Gas Grid over the past five years, having already increased capacity by approximately 25 per cent via Stages 1 and 2.
The Stage 3 expansion includes:
- Final investment decision (FID) on Stage 3A (ECGG 3A), with investment of $260 million to increase north to south capacity, supplying essential Australian gas to southern markets for winter 2028; and
- $220 million investment for Stage 3B (ECGG 3B) to enable continued early works and procurement of long lead items for the Bulloo Interlink, including purchase of 342km of line pipe and further pre-FID works to deliver additional capacity beyond winter 2028. FID will be subject to certain considerations, including policy settings, progress with the Federal Government’s Gas Market Review and final Board approval.
The staged ECGG expansion plan is designed to minimise costs for customers by anticipating demand with a fit for purpose and responsive solution. The success of this approach is evidenced by strong contracting for earlier pipeline expansions already delivered.
“These capacity expansion investments by APA, along with future planned expansions, make it crystal clear that pipeline capacity will not be a constraint to solving projected east coast gas supply shortfalls,” said APA CEO and Managing Director Adam Watson.
“It’s now critical that the Federal Government implements a well-designed gas reservation policy that supports upstream investment and ensures adequate volumes are supplied into the east coast.”
Modelling undertaken by APA provides confidence that domestic gas delivered from northern supply markets can be delivered into southern markets at a cost, inclusive of transport, materially below the cost of imported LNG.
For Australia’s east coast, supply available in the Surat and Bowen basins is expected to offset declining southern supply and, over the long-term, new basins in the Beetaloo and Taroom Trough are expected to further strengthen supply and lower prices for domestic consumers, while ensuring Australia can capture ongoing economic benefits from LNG exports.
