APA Group announced a gas transportation agreement with EnergyAustralia Pty Ltd. The agreement provides for delivery of gas sourced from Victoria into New South Wales via APA’s Moomba Sydney Pipeline and Victorian Transmission System.
The agreement has an initial term of 4.5 years, commencing next January, and replaces the current contract between APA and EnergyAustralia for the transportation of gas from Moomba.
To accommodate increased gas flows from Victoria, APA will expand the capacity of the northern zone of the Victorian Transmission System by looping sections of the Wollert to Barnawatha Pipeline, at a cost of $70 million. As a result of both expansions, the peak winter gas flow capacity from the Victorian Transmission System into the Moomba Sydney Pipeline System will increase by 125%. Work on the expansions will begin soon and be completed by next 2015.