APA Group expands in WA with new wind farm

Company News

by David Chau

Australia’s largest gas infrastructure company, the APA Group (ASX:APA), has entered into a 12-year offtake agreement with Alinta Sales Pty Ltd – an agreement which will underpin the construction of the Badgingarra Wind Farm in Western Australia.

Under this deal, Alinta will buy all the energy and Large-scale Renewable Generation Certificates generated by the wind farm.

Financial close is expected in the middle of this year and is subject to conditions precendent such as finalising a transmission connection agreement with Western Power.

APA says construction should begin in early 2019, and it the capital cost will be around $315 million.

APA is expected to report its 1H FY17 results today. Until then, their most recent result was 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.