AGL and APA Group ink pipeline development deal

Company News

by Anna Napoli

APA Group (ASX:APA) has entered into a development agreement and 20 year gas transportation agreement with AGL Energy (ASX:AGL) for the Crib Point Packenham Pipeline.

The gas and electricity company’s expenditure for the pipeline is expected to be in the range of $160 to $200 million.

The companies have been working together to develop a pipeline route for the Crib Packenham Pipeline since October 2017.

APA Group says the innovative solution championed by AGL goes towards injecting a flexible source of new gas supply into the tight domestic market in Eastern Australia.

Shares in APA Group (ASX:APA) are down 2.03 per cent to $8.19, while shares in AGL (ASX:AGL) are down 0.71 per cent to $21.04.