Australia Pacific LNG on Tuesday signed a 20-year gas transportation agreement with APA Group which includes the construction of a 50-kilometer pipeline connecting APLNG export facility and the Wallumbilla gas supply hub.
Under the agreement, APA Group will build and operate the bi-directional Reedy Creek Wallumbilla pipeline providing service of up to 300 TJ per day, securing firm, direct access to Australia’s east coast gas market for APLNG.
Speaking of the agreement, Australia Pacific LNG CEO, Page Maxson said the pipeline would enable the company to take full participation in “Australia’s dynamic gas market.”
Currently, Australia Pacific provides approximately 25 percent of domestic gas to the east coast market.
APA Group informed the company will additionally build the associated connection and compression facilities with the total construction costs set to reach AU$80 million.
The construction of the new pipeline is expected to commence in 2017 with commissioning expected around the middle of 2018.
Australia Pacific LNG is operated by ConocoPhillips that has a 37.5 percent stake in the project with Origin Energy holding an equal share and Sinopec owning the remaining 25 percent.
LNG World News Staff