LEADING Australian gas pipeline operator APA has entered into a multi-asset. multi-service gas transportation contract with AGL Energy on the east coast of Australia.
The new three-year agreement replaces a contract with AGL on the Moomba Sydney Pipeline that expires on December 31, 2016.
APA group managing director, Mick McCormack, said the new contract reflects the interconnected nature of APA’s East Coast Grid and the flexible services that APA is now able to provide on the Grid.
He said the agreement, which commences January 1, 2017, will support AGL’s evolving gas portfolio on the east coast and their changing transportation needs. The contract, worth approximately $40 million per annum in revenue, includes significant bi-directional capacity on APA’s East Coast Grid, which offers AGL continued haulage capabilities to service its needs.
“This new contract with our long term customer, AGL, demonstrates the true value of APA’s East Coast Grid. By replacing a point-to-point, Moomba ‘to’ Sydney delivery contract with bi-directional and multi-asset transportation contract, AGL is able to dynamically manage its gas portfolio and respond to market signals quickly. The Moomba Sydney Pipeline was our foundation pipeline when we listed in 2000 and it now plays an even more significant role linking the northern and southern markets as part of the gas grid we have built, “ Mr McCormack said.