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.