AUSTRALIA’S largest gas infrastructure company APA Group has announced it has signed a Memorandum of Understanding (MOU) with Comet Ridge Galilee Pty Ltd and Vintage Energy Limited that includes commencing an in-field work programme to select a pipeline route to connect Queensland’s Galilee Basin to gas markets.

Under the MOU, APA, Comet Ridge and Vintage agreed a framework for working together towards entering into a Gas Transportation Agreement (GTA).  APA would build, own and operate new pipeline infrastructure and other related infrastructure to transport gas from Comet Ridge and Vintage’s Galilee Basin Project, initially to Moranbah in Central Queensland, with a second phase of pipeline development to connect east coast gas markets via APA’s East Coast Grid.

The MOU enhances and progresses the mutually beneficial relationship formed under an earlier MOU signed in May 2016.

“We are pleased to be progressing to the next stage of work with Comet Ridge and Vintage to enable the development of the Galilee Basin as a new source of gas for Australia’s east coast,” APA Group CEO and managing director Mick McCormack said.

“APA continues to work collaboratively with gas producers in the Galilee and Bowen basins to enable gas resources to be connected to market.  The interconnected nature of APA’s East Coast Grid will enable producers, such as Comet Ridge and Vintage, to explore opportunities to market their gas. APA’s infrastructure continues to proactively connect more gas resources with gas markets to meet the needs of customers.”