APA to spend $80M expanding East Coast Grid

Company News

by David Chau

Australia’s largest natural gas infrastructure business, the APA Group (ASX:APA), will expand its 7,500 km East Coast Grid by a further 50 km.

APA will build a new gas transmission pipeline between its Wallumbilla Hub and the Australia Pacific LNG Pipeline at Reedy Creek.

The company will design, build, own and operate the pipeline, as well as the connection and compression facilities. The total building cost will be in the order of $80 million, and construction should begin next year.

APA has entered a 20-year contract with Australia Pacific LNG Marketing Pty Ltd to provide a bi-directional service on the new pipeline.

APA reported a net profit of $179.5 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.