Save Our Coast - celebration ??, page-11

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02916227-19QK0O739O2JOCGJ5SDNR4S4HJ/pdf?access_token=000792s5ZGcANPwSfsqfLdPNuMyn
APA Group (ASX: APA)
Also for release to APA Infrastructure Limited (ASX: AP2)
FIVE-YEAR EAST COAST GAS GRID EXPANSION PLAN TO DELIVER ~24% MORE NORTH-TOSOUTH TRANSPORT CAPACITY AND NEW SOUTHERN MARKETS STORAGE
APA Group (ASX:APA) today announces a five-year East Coast Gas Grid (ECGG) Expansion Plan to deliver
a ~24% increase in north-to-south gas transport capacity1 and new southern markets storage2
to help
ensure lower cost and lower emissions domestic gas3
is available to meet East Coast gas demand and
to support the delivery of new gas-powered generation.
The Plan will support ongoing earnings growth from APA’s core gas transmission business and build on
APA’s ~$700 million investment over the last four years in Stages 1 and 2 which have already added ~25%
capacity to the grid. The Expansion Plan’s initial investment of ~$75 million over the next two years has
been committed, including ~$40 million to immediately deliver two enhancements to the ECGG that
have reached Final Investment Decision (FID).
The remaining ~$35 million will fund early works on Stages 3, 4, and 5 of the Plan, to support the
development of new ECGG expansion and storage projects that will be developed over the mediumterm.
The two immediate enhancements that have reached FID will add new north-to-south gas transport
capacity in 2025 and 2026:
• The Moomba to Sydney Ethane Pipeline (MSEP) conversion project, targeting completion in 2025. APA
will invest ~$25 million to deliver this project to provide an additional ~20 TJ/day from Moomba to
Victoria or ~25 TJ/day to Sydney. After conversion to natural gas, the incremental MSEP capacity will
increase the total southbound capacity from Moomba to Sydney from 565 TJ/day to 590 TJ/day.
• The MSP off-peak capacity expansion project, which will deliver two pressure regulation skids to
increase capacity in summer months when pipeline maintenance is being undertaken. APA will
invest ~$15 million to deliver this project, with new capacity to come online in summer 2025 and 2026.
Total new MSP summer capacity on completion will be 80-120 TJ/day, delivering additional earnings
in off-peak months and supporting storage refill ahead of peak winter months.
The medium-term projects that are progressing with early works will add material further north-tosouth gas transport capacity and storage:
• Stage 3 (expansion) focusses on building capacity to move ~24% more gas between northern basins
and southern markets. This includes the proposed delivery of the Bulloo Interlink, a new 380km, 28-
inch pipeline connecting the South West Queensland Pipeline (SWQP) to the MSP, and two new
compressors on the MSP.
The Bulloo Interlink is designed to transport gas from northern basins such as the Surat in
Queensland and the Beetaloo in the Northern Territory, amongst others. Engineering design and
planning, along with long lead item procurement, is progressing as part of committed early works
funding.
The project would progressively increase MSP capacity from 590 TJ/day to 700 TJ/day. SWQP
capacity would increase from 512 TJ/day to 605 TJ/day and capacity between Young and
Melbourne would increase from 190 TJ/day to 229 TJ/day.
• Stage 4 (storage) focusses on delivering new southern market gas storage to support AEMO’s
forecast need for peaking gas-powered generation, as more variable renewable energy is added to
the National Electricity Market.4
Stage 4 involves the delivery of the proposed new Riverina Storage Pipeline (RSP) in New South
Wales (NSW), along with new compression and pipeline infrastructure. Access and approvals and
concept design is progressing as part of early works funding.
If progressed, Stage 4 would add new storage capacity in winter 2028 and 2029. The storage project
can be delivered in stages, with ~200TJ of storage online as early as 2028, with the potential to
expand to ~500 TJ as early as 2029.
• Stage 5 (expansion) adds flexibility and amplifies the investments made in Stages 3 and 4,
delivering capacity upgrades into the Victorian Transmission System (VTS). The potential project will
expand APA’s MSP and VTS systems to 350 TJ/day from Young, NSW to Wollert, Victoria through the
addition of new compressors, reconfiguration works and new metering and pressure regulation
infrastructure.
The ~84% increase in transport capacity into Wollert, Victoria could be delivered as early as winter
2029 as the Victorian market becomes more reliant on northern gas basins.