APA Group (ASX:APA) has today completed its acquisition of 100% of ARC Pipeline Pty Ltd which owns theAtlas to Reedy Creek Pipeline (ARCP).
The acquisition of ARCP is expected to be immediately cash flow accretive and value accretive. It was funded from APA’s existing balance sheet capacity and is expected to contribute approximately $12 million1 of EBITDA in FY26.
Alongside the acquisition of ARCP, APA has entered into a long-term gas transportation agreement (GTA) with Senex Assets Pty Ltd, an existing customer of APA across our East Coast Gas Grid.
This acquisition is consistent with APA’s strategy which includes a long-term focus on our core gas transmission and storage infrastructure business. ARCP extends the reach of APA’s East Coast Gas Grid further north in the Surat Basin (via the Reedy Creek to Wallumbilla Pipeline) and provides an opportunity for APA to seek to potentially capture future production growth opportunities to help supply gas to southern markets.
APA CEO and Managing Director Adam Watson said:
“This acquisition demonstrates our disciplined approach to capital allocation and highlights ongoing strong growth opportunities across our core gas transmission and storage business. The integration of this infrastructure will also support the long-term execution of our East Coast Gas Grid Expansion Plan, which will help facilitate domestic gas availability to meet future gas demand on the east coast.”