APA Group (ASX:APA) Announces Five-Year East Coast Gas Grid Expansion Plan
APA Group (ASX:APA) has unveiled a five-year East Coast Gas Grid (ECGG) Expansion Plan aimed at increasing north-to-south gas transport capacity by approximately 24%. This expansion is set to ensure lower cost and reduced emissions for domestic gas to meet rising East Coast demand and support new gas-powered generation.
Investment and Capacity Enhancements
The plan builds on APA’s recent $700 million investment over four years in Stages 1 and 2, which added around 25% capacity to the grid. An initial investment of approximately $75 million will be made over the next two years, including $40 million for two immediate enhancements that have reached Final Investment Decision (FID). The remaining $35 million will fund early works on Stages 3, 4, and 5, focusing on further ECGG expansion and storage projects.
Stage Details
The two immediate projects include the Moomba to Sydney Ethane Pipeline (MSEP) conversion, expected to be completed in 2025, and the MSP off-peak capacity expansion project, slated for summer 2025 and 2026. These projects will increase transport capacity from Moomba to Sydney and enhance summer capacity, respectively. Medium-term projects under Stages 3, 4, and 5 will further expand capacity and storage, with significant infrastructure additions planned for 2028 and beyond.
Executive Comments
APA Group CEO and Managing Director Adam Watson commented, “These are critical projects in the national interest to help secure Australia’s energy future and support a more affordable and lower emissions energy system. Australia will need gas out to 2050 and beyond as a critical backup to renewables and to support many of Australia’s key manufacturing and industrial sectors.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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