APA Group finalizes Queensland pipeline acquisition

Australian gas infrastructure entity APA Group has completed its purchase of BG Group’s 543-km pipeline network linking BG Group’s Surat-Bowen basin coal seam gas fields with the recently commissioned LNG plant on Curtis Island near Gladstone in Queensland.

APA already owns $12 billion (Aus.) worth of energy assets and the acquisition extends the group’s east coast Australia pipeline grid to more than 7,500 km.

The final price for the BG line was $5.9 billion (Aus.) and APA has renamed it the Wallumbilla-Gladstone pipeline.

BG placed the pipeline on the market in 2014 to pay down debt and meet development commitments.

APA says has not only bought the pipeline, but gained two significant customers in BG and China National Offshore Oil Corp. as part of the transaction.

APA beat rivals including Envestra, Australian Pipeline, and Marubeni Corp. to make the purchase.