APA to develop $130m pipeline in Northern Territory


Australian Pipeline Trust (APA) has entered into an agreement with the Northern Territory government and Power and Water Corporation (PWC) for the development by APA of a $130 million new gas pipeline in the Northern Territory. The agreement commits the parties to the transportation of gas for a 25-year period commencing in 2009, APA said.
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AdvertisementToday’s agreement follows negotiations commenced last December when PWC entered an agreement with ENI Australia for the supply of gas from the offshore Blacktip field to meet the Northern Territory’s long-term power generation requirements from 2009. The pipeline would run from the on-shore gas plant at Wadeye to the Amadeus Basin to Darwin Pipeline (ABDP). APA said it has a 96% interest in NT Gas, the operator of the ABDP. The gas transmission firm said that based on preliminary work by PWC, the pipeline would follow a route of approximately 275km from Wadeye to connect into the ABDP in the vicinity of Adelaide River, and would be initially capable of delivering approximately 30 petajoules per year. APA chief executive officer Mick McCormack said in a press statement that the final route and capacity requirements of the pipeline would be agreed upon by the end of the financial year. “This agreement for a major new pipeline development is an important step in realising APA’s long-term vision of bringing northern gas into Australia,” Mr McCormack said. “It also builds on our long history in the Northern Territory and continues our commitment to support the growing energy requirements of the Territory through our existing ownership interest in NT Gas, the operator of the ABDP,” he said. “We look forward to working with the Northern Territory Government and PWC in getting on with what we do well, and developing this pipeline for the benefit of the Territory,” Mr McCormack concluded. At 1428 AEST, shares in Australian Pipeline Trust were up 6c to $4.35.
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