APA acquires the Amadeus Gas Pipeline in the Northern Territory
APA Group (ASX:APA), Australia’s largest natural gas infrastructure business, announced it will acquire the 1,630 km Amadeus Gas Pipeline in the Northern Territory for $63 million. The acquisition is supported by a long term gas transportation agreement.
Commissioned in 1986, the Amadeus Gas Pipeline transports gas to Darwin, Katherine and other locations principally to fuel power generation in the Northern Territory. Gas is delivered into the pipeline via the Bonaparte Gas Pipeline as well as from the Amadeus Basin in Central Australia.
Since 1986 the Amadeus Gas Trust has leased the pipeline from a consortium of financial institutions, and NT Gas as trustee for the Amadeus Gas Trust has managed and operated the pipeline. APA holds a 96% interest in NT Gas and the Amadeus Gas Trust. APA is acquiring the pipeline and associated assets at the end of that lease.
APA has entered into a long term gas transportation agreement with Power and Water Corporation, the Northern Territory’s government owned electricity provider. The agreement provides for services on the pipeline to meet the growing energy needs of the Northern Territory and underpins the acquisition.
APA Managing Director, Mick McCormack said the acquisition ensures APA’s continued presence in the Northern Territory. "I’m proud of our long history in the Territory. This acquisition, together with our gas transportation agreement, strengthens our strong relationship with Power and Water Corporation and our commitment to meeting the energy requirements of the Territory for the long term."
The acquisition of the pipeline complements APA's interest in the Bonaparte and Wickham Point pipelines and reinforces operational synergies between the three assets. The assets also provide APA with the ability to capture new growth opportunities in the Northern Territory when they arise.
For more information please visit http://www.apa.com.au
Legal adviser to APA Group
Partner Mark Pistilli commented:
"We are very pleased to continue our long association with APA Group – our lawyers have advised APA Group since its initial listing in 2000," “It is particularly pleasing to see the gas infrastructure network in the Northern Territory completed and in the hands of APA Group – and we wish them and the Northern Territory government continued success in helping to meet the Territory’s growing energy needs.”