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.