Energy Investments
APA has minority interests in a number of energy infrastructure vehicles:
APA provides asset management, operation and maintenance services to these assets, with the exception of Hastings Diversified Utilities Fund. APA also provides comprehensive corporate, financial and accounting services to the Ethane Pipeline Income Fund and Energy Infrastructure Investments .
Envestra Limited
APA acquired a 17.2% interest in Envestra Limited in July 2007, and through participation in Envestra's Distribution Reinvestment Plan and underwriting of Envestra’s 2009 Rights Issue, has increased its interest to 33.0%.
Envestra is an ASX-listed Australian natural gas distribution and transmission company, servicing over 1 million customers through its natural gas distribution networks in South Australia, Victoria, Queensland, New South Wales and the Northern Territory. Envestra is one of Australia’s largest natural gas distribution companies, owning approximately 21,000 km of distribution networks and over 1,000 km of transmission pipelines. The majority of Envestra’s revenue comes from regulated distribution charges.
APA also operates and maintains Envestra's assets under a long term agreement.
SEA Gas Pipeline
SEA Gas Pipeline (“SEAGas”) is an unregulated, 680 km pipeline that commenced commercial operations in January 2004. It transports natural gas from Port Campbell and Iona in Victoria to Adelaide and other regional markets in South Australia and Victoria as the only pipeline connecting Victoria’s gas fields to South Australia. SEAGas also connects into the Victorian Transmission System and the TRUenergy Underground Storage facility at Port Campbell, Victoria.
At present, SEA Gas transports over half of Adelaide's natural gas requirements. Nearly all of the SEA Gas’s current load is sourced from the three foundation shippers (Origin Energy, International Power and TRUenergy) under long term agreements, with the initial term to the end of 2018, and two extensions of 5 years each.
Energy Infrastructure Investments
In December 2008 APA established the unlisted investment vehicle, Energy Infrastructure Investments Pty Limited, selling a number of its low growth annuity-style assets into the vehicle.
The assets transferred into EII comprise:
- Electricity interconnectors – Murraylink and Directlink,
- Gas power generation – Daandine and X41 power stations,
- Coal seam gas processing plants – Tipton West and Kogan North, and
- Gas pipelines – Telfer/Nifty Gas Pipeline, Bonaparte Gas Pipeline and Wickham Point Pipeline (under construction ath the time of sale).
APA retains a minority interest of 19.9% in Energy Infrastructure Investments, with Marubeni Corporation holding a 49.9% stake and Osaka Gas 30.2%.
APA continues to manage, maintain and operate the assets under a long term agreement with a market-based fee structure.
Ethane Pipeline Income Fund (ASX: EPX)
In April 2008 APA acquired a 6.1% interest in the Mariner Pipeline Income Fund (now the Ethane Pipeline Income Fund) together with the management rights for the Fund. In December 2008, an entity nominated by APA, APA Ethane Pty Limited, was appointed as Responsible Entity of the Fund.
The Ethane Pipeline Income Fund is an ASX-listed registered managed investment scheme. Its sole operating asset is the 1,375 km Moomba to Port Botany Ethane Pipeline (Ethane Pipeline) that for much of its length occupies the same easement with the Moomba Sydney Pipeline. The Ethane Pipeline supplies ethane to a petrochemical facility at Port Botany under a long-term transportation agreement. APA currently operates and maintains the Ethane Pipeline under a long-term agreement.
EII2
North Brown Hill wind farm at Hallet, South Australia is the sole asset of EII2. It is the first investment in renewable energy generation by the EII consortium.
APA has a minority interest of 20.2%, with remaining interest comprising Marubeni Corporation (39.9%) and Osaka Gas Company Ltd (39.9%). EII2 purchased the North Brown Hill wind farm project from AGL Energy. It has a long term (25 year) offtake arrangement with AGL Energy for both the electricity generated and the renewable energy credits produced.
The North Brown Hill wind farm is currently in the initial stages of construction, and at completion will have 63 wind turbines with a total wind-generated capacity of 132.3 MW.
Hastings Diversified Utilities Fund (ASX: HDF)
HDF is an investment vehicle managed by Hastings Funds Mangement Limited, a subsidiary of Westpace Banking Corporation. HDUF comprises HDUF Epic Trust, HDUF Finance Trust and HDUF Further Investments Trust.
HDF Group's investment portfolio currently comprises 100% ownership of Epic, a large Australian gas transmission compnay and cash. Epic consists of three natural gas pipeline systems - the Moomba to Adelaide Pipeline System, the SWQ Pipeline and the Pilbara Pipeline system.
APA holds a 20.7% interest in HDF.
GDI (EII) Pty Ltd
In December 2011, APA sold the Allgas Gas Network into an APA minority owned unlisted investment vehicle - GDI (EII) Pty Ltd. APA maintains a 20% interest, with equity partners Marubeni Corporation and RREEF each holding a 40% interest.
The Allgas Gas Network extends from Brisbane, south of the river, to the nrothern tip of New South Wales, with separate networks in Toowoomba and Oakey. In addition, a small pipeline (1km) services an ammonium nitrate plant at Moura, Central Queensland.