Sep 07, 2016

APA in $80m pipeline project to supply APLNG

APA in $80m pipeline project to supply APLNG APA Group's Wallumbilla gas hub in the Surat Basin.

APA Group plans to build an $80 million gas transmission pipeline and associated facilities to link its Wallumbilla gas hub with the Australia Pacific LNG pipeline at Reedy Creek in south-west Queensland.

The Reedy Creek Wallumbilla Pipeline project will expand APA’S 7500km East Coast Grid by a further 50km, providing a key link to the Wallumbilla gas hub for one of the three major LNG projects operating out of Gladstone.

APA will design, build, own and operate the pipeline as well as constructing associated connection and compression facilities.

The company has entered into a 20-year contract with Australia Pacific LNG Marketing to provide a bi-directional service of up to 300 terajoules a day on the new pipeline.

APA Group managing director Mick McCormack.

“This new greenfield pipeline continues APA’s growth focus with another strategic energy infrastructure asset underwritten by a long-term contract with a highly creditworthy counterparty,” APA Group managing director Mick McCormack said.

“It is always very pleasing to further our relationships with existing customers and offer additional services and facilities to add value to and enhance their operations.”

Following processing of the required pipeline development approvals and access arrangements, APA will commence construction in 2017, with the pipeline forecast to be commissioned around the middle of 2018.

State Development Minister Anthony Lynham said the project would offer about 170 jobs, including 20 permanent jobs within land access, approvals, technical design and procurement teams and 100 to 150 jobs for the construction phase of the project.

Dr Lynham said the pipeline would give APLNG the flexibility to send gas either to Gladstone for export LNG production or directly to the domestic gas market.

“My Department of Natural Resources and Mines is currently assessing APA’s application for a petroleum survey licence as the first step to investigating various alternative pipeline routes between the existing facilities,” he said.

“The resources industries continues to provide jobs and business opportunities for Queensland’s regional communities, with this project coming on top of QGC’s $1.7 billion Charlie natural gas development near Wandoan.” 

Australia Pacific LNG chief executive officer Page Maxson said that, given Wallumbilla hub’s position as a strategic point in the east coast gas market, the new pipeline would provide the company the opportunity to participate flexibly and fully in Australia’s dynamic gas market.

“As one of Australia’s main suppliers of domestic gas, Australia Pacific LNG supports the work that the COAG Energy Council, AEMC and AEMO have done in establishing and working with industry to ensure the hub’s success,” Mr Maxson said.

Businesses interested in APA pipeline supply opportunities should visit https://www.apa.com.au/suppliers-and-contractors/becoming-a-supplier/