APA notes SEA Gas major contract commitments
APA Group (ASX:APA), notes today’s media release by SEA Gas (attached within PDF below)) announcing the signing of multiple customer agreements on the SEA Gas Pipeline. The suite of contracts runs on average for 5 years, and locks in more than 80 per cent of the pipeline’s firm capacity.
The 700 km1 SEA Gas Pipeline, was commissioned in 2004, and is the key gas transmission link between Victoria and South Australia, providing approximately 50 per cent of Adelaide’s gas supply.
APA acquired an initial interest in the pipeline in 2007 and increased its interest to 50 per cent in 2010, with the balance owned by Rest. APA also provides maintenance services for the SEA Gas asset portfolio.
APA’s Managing Director Mick McCormack said, “Today’s announcement by SEA Gas is a great outcome. It shows the key role gas has to play in Australia’s transition to a lower carbon future, with South Australia having the highest renewable energy target of all the states. The SEA Gas pipeline continues to play a significant role in the transport of gas to various offtakes and interconnected pipeline systems in South Australia and Victoria.”
1 Includes laterals