The agreement also includes extension options over some capacity for a period up to 10 years, as well as additional long-term capacity on the Moomba to Adelaide Pipeline and options to further expand the capacity of the South West Queensland Pipeline (SWQP) in the future.

Origin Executive General Manager Energy Markets Frank Calabria said “The expansion of the South West Queensland Pipeline and QSN Link will provide Origin with increased flexibility in moving gas resources from Queensland to our customers and power stations in southern Australia.”

Epic’s parent company, Hastings Diversified Utilities Fund, has confirmed the refinancing of its debt as well as funding for the QSN 3 Expansion at a total cost of $858 million. The project management and construction of the pipeline expansion is expected to cost $732 million.

A conditional gas transportation agreement had previously been signed by Origin and Epic in June 2009. Origin and AGL Energy have also previously signed contracts with Epic for over 90 per cent of additional capacity from the project’s completion in January 2012.

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The QSN 3 Project incorporates the looping construction of the 937 kilometre, 450 millimetre diameter SWQP, which runs between Wallumbilla in South East Queensland and Moomba in South Australia, and the QSN Link Pipeline. The expansion is expected to increase the pipeline’s capacity from approximately 168 terajoules per day (TJ/d) to in excess of 380 TJ/d.