APA Group has acquired the 56km-long Atlas to Reedy Creek Pipeline in the Surat Basin through a $110 million deal with Senex.
The 189 TJ/d gas transmission pipeline ships gas from Senex’s Atlas East Compression Facility to APA’s Reedy Creek to Wallumbilla Pipeline (RCWP).
The acquisition includes a 20-year take-or-pay gas transportation agreement (GTA) with Senex Assets for 60 TJ/d.
APA Group said the addition of the Atlas to Reedy Creek Pipeline (ARCP) extended the reach of its East Coast Gas Grid further north in the Surat Basin.
This paved the way for APA to potentially capture future production growth opportunities to help supply gas to southern markets, it said.
“This agreement highlights the existence of ongoing strong growth opportunities across our core gas transmission business, as we continue to pursue projects that will support energy security and transition across Australia’s east coast,” APA chief executive officer and managing director Adam Watson said.
“The ARCP complements our existing gas transmission infrastructure in Queensland and is expected to deliver ongoing revenue and earnings growth over the long-term.
“Senex’s Atlas project will play a critical role providing gas to the east coast market, providing domestic gas to help address shortfalls and meet future gas demand.
“This acquisition of ARCP, which connects to our broader east coast network, further strengthens the long-term role our east coast gas infrastructure plays in Australia’s energy market.
“It also supports the ongoing execution of our East Coast Gas Grid expansion plan which we continue to progress to deliver value for our customers and attractive returns for our investors.”
APA Group in February announced a five-year East Coast Gas Grid (ECGG) expansion plan to boost north-to-south gas transport capacity by about 24 per cent and add storage.