APA Advances East Coast Gas Grid Expansion, Lifts Growth Pipeline to $2 Billion
APA Group is advancing Stage 3 of its East Coast Gas Grid Expansion Plan while increasing its three-year organic growth pipeline to about AUD$3 billion (US$2 billion), signaling continued investment in Australian gas transmission infrastructure.
(P&GJ) — APA Group is moving ahead with additional pipeline capacity investments under its East Coast Gas Grid Expansion Plan, as the Australian midstream operator reported higher earnings and outlined an expanded infrastructure growth pipeline.
The company said it is progressing Stage 3 of its East Coast Gas Grid Expansion Plan, which includes new transmission capacity designed to address projected supply shortfalls across eastern Australia.
“We also today announce we are progressing Stage 3 of our East Coast Gas Grid Expansion Plan,” CEO and Managing Director Adam Watson said.
“These capacity expansion investments by APA, along with future planned expansions, make it crystal clear that pipeline capacity will not be a constraint to solving projected east coast gas supply shortfalls.”
Stage 3A has reached final investment decision, while Stage 3B remains subject to board approval.
APA also confirmed a favorable regulatory outcome for the Bulloo Interlink, a key component of the expansion plan. The pipeline will be subject to lighter regulation upon commissioning and exempt from heavy regulation for at least 10 years.
The company increased its fiscal 2026–2028 organic growth pipeline from AUD $2.1 billion to approximately AUD $3 billion (US$1.95 billion). The capital program will be funded through existing balance sheet capacity and its Distribution Reinvestment Plan.
During the first half of fiscal 2026, APA reported underlying EBITDA of AUD $1.09 billion (USD$710 million), up 7.6% year over year. The increase was supported in part by new asset contributions, including the Kurri Kurri Lateral Pipeline and the Atlas to Reedy Creek Pipeline.
Watson said the company remains positioned to pursue additional infrastructure opportunities.
“Our progress with our growth strategy has resulted in an increase in our FY26-FY28 organic growth pipeline from $2.1 billion to ~$3 billion.”
APA’s balance sheet capacity was also strengthened after S&P modified its credit rating threshold, increasing funding flexibility by more than AUD $1 billion (US$650 million).
The expansion efforts come as Australian energy policymakers continue to evaluate long-term gas supply adequacy on the country’s east coast.