Australia Pacific LNG has signed a 20 year gas transportation agreement with APA Group which will see APA Group build and operate a pipeline from the Australia Pacific LNG network directly to the Wallumbilla Gas Supply Hub.
The 50 km bi-directional pipeline, starting from Australia Pacific LNG’s Reedy Creek site, is the shortest distance between the facilities and the Hub, securing firm, direct access to the market.
Australia Pacific LNG CEO, Page Maxson, said: “We are pleased to announce this long-term agreement with APA Group, a significant owner of east coast gas transportation infrastructure.
“Australia Pacific LNG’s strong reserve position provides flexibility and, given Wallumbilla Hub’s position as a strategic point in the east coast gas market, this new pipeline will provide us the opportunity to participate flexibly and fully in Australia’s dynamic gas market,” Maxson said.
Australia Pacific LNG is the largest producer of natural gas in eastern Australia, currently providing approximately 25% of domestic gas to the east coast market.
“As one of Australia’s main suppliers of domestic gas, Australia Pacific LNG supports the work that the COAG Energy Council, AEMC and AEMO have done in establishing and working with industry to ensure the Hub’s success,” Maxson said.
Edited from source by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/06092016/new-pipeline-deal-for-aplng/