APA Group, Australia’s largest natural gas infrastructure business, has signed a new gas transportation agreement with Energy Australia Pty Ltd.
The new agreement provides for the delivery of gas sourced from Victoria into New South Wales via APA’s Moomba Sydney Pipeline and Victorian Transmission System. The agreement has an initial term of 4.5 years, commencing January 2015, and replaces the current contract between APA and EnergyAustralia for the transportation of gas from Moomba.
To accommodate increased gas flows from Victoria, APA will expand the capacity of the northern zone of the Victorian Transmission System by looping sections of the Wollert to Barnawatha pipeline, at a cost of approximately $70 million. This expansion is approved under the current access arrangement, and is in addition to the expansion required for Origin Energy announced on 26 September 2013.
As a result of both expansions, the peak winter gas flow capacity from the Victorian Transmission System into the Moomba Sydney Pipeline System will increase by 125 per cent. Work on both expansions will commence this year and be completed by winter 2015.
APA Managing Director Mick McCormack said, “This agreement with EnergyAustralia, which follows the agreement recently announced between APA and Origin Energy, will help increase flexibility of gas supply into New South Wales.
“The expansions on the Victorian Transmission System will further enhance APA’s pipeline grid, and give our customers greater flexibility in sourcing and transporting gas across the east coast.”