Origin Secures Gas Pipeline Capacity to Link Eastern Australian Portfolio
Origin has entered into a conditional gas transportation agreement with Epic Energy which will result in the expansion of capacity on the 935 kilometer South West Queensland Pipeline and QSN Link from Wallumbilla to Moomba.
Origin's Executive General Manager Energy Markets, Frank Calabria said, "The expansion of the South West Queensland Pipeline and QSN Link will provide Origin with increased flexibility in moving gas resources from Queensland to our customers and power stations in southern Australia."
Origin has entered into a conditional agreement for the transportation of up to 1,200 PJ of gas over 22 years from January 2012 with extension options over some capacity for up to a further 10 years. The agreement also includes additional long term capacity on the Moomba to Adelaide pipeline and options to further expand the capacity of the South West Queensland Pipeline in the future.
Completion of the transaction is subject to Epic securing funding for the development. Should Epic be unable to secure funding within an agreed timeframe, Origin has the opportunity to provide a significant proportion of the funding required for the project to Epic on market competitive terms.
In certain circumstances where the project does not proceed, despite Origin being prepared to provide funding, Epic may be required to provide Origin with some zero charge gas transportation services on the Moomba to Adelaide Pipeline System.
Epic is wholly owned by the Hastings Diversified Utilities Fund.
- Beach Energy Buys Origin's Lattice in $1.25 Billion Deal (Sep 28)
- Energy Titans Get Schooled in Sharing as Billions Seen Blown (May 09)
- Australia's Origin Energy Doubles Stake In Beetaloo Shale Gas Field (May 05)