APA Group
(ASX:APA) has inked a non-binding agreement with Armour Energy Limited
(ASX:AJQ) to transport gas from Armour’s north Australian gas projects to eastern Australia and Northern Territory gas markets.
APA has agreed to work with Armour Energy to explore the development of new pipeline infrastructure.
Any investment is subject to conditions, including gas resource certification, gas supply and transportation agreements and final board approvals.
APA managing director Mick McCormack says the pipeline network positions the company to work with new producers to deliver gas to domestic and international markets.
APA owns and operated a 7,000 km natural gas pipeline in eastern Australia, while Armour Energy is near Mt Isa.
APA generated a net profit of $209.2 million in the first half of the current financial year.
