APA to build $130m gas pipeline Business The Australian

AUSTRALIAN Pipeline Trust (APA) has signed an agreement to build a $130 million natural gas pipeline in northern Australia to help meet Darwin's growing appetite for gas.
The pipeline, which will supply fuel from a field owned by Italy's ENI, will also consolidate the operations of APA in the region. Gas will be transported from Blacktip to the Amadeus Basin to Darwin Pipeline (ABDP), in which APA owns a 96 per cent stake.
Last year a separate plan to pipe gas 1000km from Blacktip to supply Alcan's alumina refinery at Gove was abandoned after talks between ENI and Alcan faltered.
APA chief executive Mick McCormack said since the previous plan for the trans-Territory pipeline was discarded APA had been knocking on doors for possible new deals in the NT.
"Even though the trans-Territory pipeline died we always had the view that Power & Water Corp needed gas," he said. "We have been looking very actively for a new gas supply to Darwin which can use our current pipeline (ABDP)."
The planned 275km pipeline will be able to deliver about 30 petajoules of gas a year, with the final route and capacity to be finalised by the end of June.
"It's not our biggest project. However, it's very important for our business up in the Northern Territory," Mr McCormack said.
The pipeline would take the dry season of 2008 to build, with first gas expected to be delivered on January 1, 2009. "We've put $130 million on it. We've done a lot of these sorts of things and we are pretty confident we will control the costs and get it done on time and on budget," he said.
APA shares rose 7c to $4.36.
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