Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed gas infrastructure group APA Group on Wednesday completed the $4.6-billion buy of the Queensland Curtis liquefied natural gas (QCLNG) pipeline from project developer BG Group.
The pipeline was renamed the Wallumbilla Gladstone pipeline.
APA said on Thursday that the final acquisition price for the transaction had been determined on the finalisation of several parameters, including US Producer Price Index, which resulted in a decrease from the original offer price of $5-billion, as announced in December last year.
“We are very pleased to have completed this acquisition which extends the footprint of our east coast gas grid to over 7 500 km across eastern Australia and represents APA’s largest ever pipeline acquisition,” said APA MD Mick McCormack.
“We have also gained two significant global customers in BG Group and China National Offshore Oil Corporation as part of this transaction and we look forward to further developing our relationship with each of them.”
The QCLNG pipeline transports gas from various fields in the Surat basin to the QCLNG export facility, at Gladstone, and consists of 543 km of transmission pipeline, three laterals, and interconnections with the Gladstone LNG and Australia Pacific LNG project transmission pipelines.
Under gas transportation agreements, the QCLNG pipeline revenues had been fully contracted with BG Group entities and China National Offshore Oil Corporation-owned entities, on a 20-year take-or-pay basis.