The contract extension provides for southerly services on APA’s East Coast Grid for an additional two years when the existing contract expires on 31 December 2018.
The extension is expected to generate approximately $38 million of revenue over the two-year period and also includes a further one year extension option.
“It is always pleasing to make announcements such as this one, where we have worked closely with an existing major customer to provide cost effective services and the flexibility required to help them meet their gas transportation needs,”? said APA Managing Director Mick McCormack.
“We are always looking at ways to add value for our customers so as to optimise their energy needs.”
“APA has invested significantly in developing the East Coast Grid which has in turn enabled our customers to benefit from an extensive network of gas pipeline infrastructure up and down eastern Australia that provides the flexibility required in the dynamic gas market we’re now operating in.”
The terms of the extension are consistent with the expiring GTA terms and APA’s current pricing methodologies.