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APA poised to take advantage of Australia’s move to natural gas

Mr McCormack said that the pipeline industry will benefit from the use of natural gas to supplement other forms of electricity generation over the next ten years, which will be further influenced by the Federal Government’s Carbon Pollution Reduction Scheme and recently legislated renewable energy targets.

“Regardless of the final outcome, significant new investment in gas pipelines will be required to facilitate the uptake of gas-fired generation. There is currently more than 10,000 megawatt (MW) of gas-fired generation plants in construction of planning stages or proposed in eastern Australia.

“Each of these power stations will require gas transportation and storage services and APA is in the advantageous position of having the infrastructure in place, and the skills and experience to provide this,”? Mr McCormack said.

Mr McCormack also said that the pipeline industry has concerns that third party regulators are “seeking to interfere”? in the process of negotiating contracts between transmission customers and pipeline operators.

“There is no need for any government or regulatory body to instruct where, when and how to build this infrastructure. We believe that this should remain the case and we will strongly oppose the interference of third-party planners instructing APA and other pipeliners how to grow our business and how to price our services.”?

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