Natural gas infrastructure business APA Group Ltd
(ASX:APA) has agreed to supply liquefied natural gas to BOC of Germany in a deal worth about $200 million.
A series of LNG refuelling stations are expected to be built along the east coast from Melbourne to Brisbane in conjunction with the 17-year gas supply agreement.
BOC South Pacific managing director Colin Isaac says the deal will provide the necessary reliability to lure the trucking industry to LNG.
Mr Isaac says LNG will produce up to 20% less greenhouse gas emissions than diesel and be more cost efficient.
The LNG refuelling stations will be sourced with LNG from BOC’s plants at Dandenong, southeast of Melbourne, and Chinchilla in Queensland.
For the 12 months to June 30, 2009, APA Group reported a profit of $78.77 million.
