APA Group, Sydney, reached final investment decision (FID) for its Australian east coast gas grid expansion project (OGJ Online, June 20, 2017) . The project will meet forecast winter gas supply shortfalls from 2023, the company said.
The $270 million (Aus.) expansion will take place in two stages and will increase winter peak capacity of the east coast grid by 25% through additional compression and associated works on both the southwest Queensland and Moomba-Sydney pipelines.
The first stage will increase capacity of the Wallumbilla-Wilton sector by 12%. It is expected to be commissioned in first-quarter 2023.
The second stage will add a further 13% capacity. It is scheduled for commissioning near end-2023.
Engineering and design work for a contemplated third stage to add another 25% transportation capacity is currently under way.
APA signed a new gas transportation agreement with Origin Energy Ltd., Sydney, to support Origin’s energy supply needs in southern Australian markets, including winter peak gas demand, ahead of the projected 2023 supply risks.
The agreement is for an initial 3 years with the option of a further 2-year extension. APA will deliver a portfolio of services to supply northern Australian gas to southern markets through the east coast grid.