APA LOOKING TO BUILD BOWEN BASIN GAS PIPELINE
INDUSTRIAL utility APA Group appears set to build a new gas pipeline connecting Queensland’s Bowen Basin to New South Wales, Victoria and South Australia.
The major energy infrastructure company, headed by chief Mick McCormack, will undertake a feasibility study into expanding its east coast grid, and consider route options and cost estimates for the new pipeline.
APA has signed an initial agreement with explorer Blue Energy, chaired by former Santos chief John ElliceFlint, to help transport its gas resources from the Bowen Basin. Under the agreement, APA will consider building, owning and operating the pipeline infrastructure, and transport Blue Energy’s gas.
APA signed a similar agreement with explorer Comet Ridge last year to connect that company’s gas resources in the nearby Galilee Basin to its east coast grid. Yesterday APA said that combined, the two projects have material resources to provide additional supply to the east coast gas market.
Gas from the Bowen Basin is presently routed northwards into the Moranbah and Townsville markets but the link now being considered would allow this to be supplied to and traded anywhere between Townsville and Hobart, Blue Energy boss John Phillips said.
Shares in APA closed down 0.8 per cent at $9.63, while Blue Energy shot up 16.1 per cent to 6.5¢.