APA signs new pipeline deal

APA Managing Director Mick McCormack.

APA Managing Director Mick McCormack.

APA Group has signed a gas transportation agreement to expand capacity of the Victoria – New South Wales Interconnect.

The multi-services agreement provides for the delivery of gas sourced from Victoria to the eastern Australian gas market for a term of seven years.

The expansion project will require looping on both the Moomba to Sydney Pipeline and the Victorian Transmission System, with the total cost of the expansion expected to be approximately $A85 million

As a result of the expansion, daily capacity of the Victoria – New South Wales Interconnect is expected to increase by 30 TJ.

“This agreement is the fourth we have reached which collectively will treble capacity of the Victoria – New South Wales Interconnect since September 2013 and is a result of APA working with our customers to connect their gas resources to their markets,” APA Managing Director Mick McCormack said.

Project works have commenced and construction is expected to be completed by the middle of calendar year 2016.

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