Ann: APA announces expansion of ECG & new ORG GTA, page-2

APA deserves credit for a detailed, comprehensible release to the ASX, something that's been missing from it off its own bat regarding the Orbost-COE situation.

It'd be good to see what columnists like Terry McCrann and Stephen Bartholomeusz think of the second initiative, but on the face of it, the pipeline capacity expansion is a pleasing announcement that should be well regarded by the Federal Coalition Government.

The latter wants investment and has been under pressure from large industrial gas users who want a regulated gas price, but that latter demand has been knocked back (I opine sensibly despite holding BKW shares) by Minister Angus Taylor.

Will there be a positive reaction from these major gas users such as BKW, ORI and Qenos.

The 'southern state' of Victoria isn't mentioned by name which is a bit odd but 'southern markets' include it.

More than 50 per cent of demand for household use of natural gas comes from Victoria, and don't we who live there know it!

There is pressure from the community to manufacture more items in Australia although the pattern during the past 40 years has been for less of this to occur with extremely high labour costs mitigating against anything but a decline in manufacturing. The pipeline expansion will allow the Federal Government, and the industry association APPEA to suggest that the capacity increase includes a bit of room for manufacturing initiatives. Whether these become reality or we continue to see the slow, steady decrease in local manufacturing is an open question.

Am I correct there are economies of scale with higher capacity gas pipelines and that despite the capital cost, over the medium term it ought be accretive for holders of APA scrip?