APLNG, APA Ink 20-Year Gas Transportation Agreement

Australia Pacific LNG Pty Ltd. announced Tuesday it has signed a 20-year Gas Transportation Agreement with APA Group which will see the latter build and operate a pipeline from the Australia Pacific LNG network directly to the Wallumbilla Gas Supply Hub in Queensland.

The 31 mile (50 kilometer) bi-directional pipeline, starting from Australia Pacific LNG’s Reedy Creek site, is the shortest distance between the facilities and the Hub, securing firm, direct access to the market.

"We are pleased to announce this long-term agreement with APA Group, a significant owner of east coast gas transportation infrastructure ... Australia Pacific LNG’s strong reserve position provides flexibility and, given Wallumbilla Hub’s position as a strategic point in the east coast gas market, this new pipeline will provide us the opportunity to participate flexibly and fully in Australia’s dynamic gas market,” Australia Pacific LNG CEO Page Maxson said in the press release.

Australia Pacific LNG, the largest producer of natural gas in eastern Australia, currently providing around 25 percent of domestic gas to the east coast market.



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