Australia's APA commits $492m for key gas pipeline project
Australia's APA Group on Thursday approved an A$700-million ($491.6-million) investment in the Bulloo Interlink Pipeline, a major east coast gas project aimed at easing forecast supply shortages in southern Australia.
The final investment decision covers construction and commissioning of the pipeline, taking APA's total commitment to the project to about A$920-million, including A$220-million of early works approved in February.
Construction is set to begin in early 2027, with commercial operations targeted for the winter of 2029, subject to regulatory approvals, the energy infrastructure firm said.
The pipeline forms Stage 3B of its East Coast Gas Grid expansion plan, APA said.
"The BIL is designed to ensure pipeline capacity is not a constraint to meet projected gas demand for Australia’s southern states later this decade and into the early 2030s," said APA CE and MD Adam Watson.
APA said it had signed a five-year, take-or-pay, inflation-linked gas transportation and storage agreement with Origin Energy.
The agreement includes summer and winter capacity on the firm's key east coast assets, including the South West Queensland Pipeline, Moomba to Sydney Pipeline and the BIL, once commissioned.
Shares of APA and Origin Energy were trading flat in early trade.
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