• APA Group and Empire have executed an MOU to explore opportunities for the development of Beetaloo mid-stream infrastructure including gas and liquids gathering, processing and pipelines
• Empire and APA will promote a ‘common user’ model for development of Beetaloo Sub-basin infrastructure to drive economic outcomes
• APA’s Northern Strategy envisages expansion of its Amadeus Gas Pipeline connecting to Darwin
• APA’s Eastern Strategy includes development of a new Beetaloo gas pipeline connecting to eastern markets via APA’s continuous gas distribution network
Empire Energy Group Limited has executed a transportation services memorandum of understanding (“MOU”) with APA Transmission Pty Ltd, a wholly owned subsidiary of APA Group Limited (“APA”). APA is a leading Australian energy infrastructure business and its continuous network of gas pipelines on the east coast access all the principal east coast markets including Gladstone, Brisbane, Mount Isa, Wallumbilla, Sydney, and Melbourne. APA owns the Amadeus Gas Pipeline in the Northern Territory.
APA and Empire have executed the MOU to explore opportunities to enter appropriate development and commercial agreements for APA to build, own and operate gathering, production, processing, and transportation infrastructure for the movement of gas and liquids from Empire’s Northern Territory assets.
APA and Empire will also promote a ‘common user’ model for development of the Beetaloo Subbasin infrastructure to drive economies of scale benefits and lower cost per unit charges. In addition, APA proposes a staged and incremental development approach for the Beetaloo Sub-basin, thereby leveraging its network to reduce the required initial capital investment and align the pace of upstream development.
The MOU does not restrict Empire from engaging, negotiating and entering into agreements for use of the McArthur River Gas Pipeline.
APA’s Northern Strategy envisages expansion of the Amadeus Gas Pipeline through additional gas compression augmenting the Northern Territory Government’s plans for development of gas supported manufacturing industry and LNG export expansion at Darwin.
APA’s Eastern Strategy includes development of a greenfield pipeline between the Amadeus Gas Pipeline and Carpentaria Gas Pipeline at Mount Isa to bring gas to southern markets to help address predicted future shortfalls in both domestic market and LNG export capacity at Gladstone. The proposed new Beetaloo pipeline will become part of the existing APA gas distribution network and be the most capital efficient model for connecting the Beetaloo Sub-basin to market. APA will outline its Beetaloo infrastructure plans later today at the South East Asia Australia Offshore & Onshore Conference (“SEAAOC”).