APA GROUP will make additional use of the Moomba-Sydney pipeline after signing a deal with an existing customer for additional gas transportation and storage services.
The deal will see the company provide flexible gas transportation services from multiple receipt and delivery points on the east coast grid.
APA said the deal, scheduled to commence in September 2015, would not require further significant capital investment on its part.
The total minimum revenue for the initial term of seven years is $80 million, the company said, with an option for up to three more years.
Company managing director Mick McCormack said the east coast grid was opening up a new range of services and providing shippers with new flexibility in portfolio management.
“Against the backdrop of a very dynamic gas market in the south east of Australia we are optimising the use of our existing assets, such as the Moomba Sydney Pipeline, as well as progressively developing our infrastructure and services in response to the requirements of our customers and the market,” he said.
“We have been positively surprised by the relatively high permeability of the coals and are currently planning the next stage of testing to obtain a full understanding of the potential of these high productivity coals.”