Australian Pipeline to Get More Compression
Monday, April 23, 2012
Australian pipeline operator Hastings Diversified Utilities Fund (HDF) plans an Aus$100 million upgrade of compression at Epic Energy’s compound at Moomba field in South Australia.
The deal, which begins in 2014, will enable Santos to ship more gas through the South West Queensland Pipeline from Moomba to Wallumbilla, Queensland. Santos is trying to move more Cooper Basin production to liquefied natural gas plants planned near Gladstone, Queensland.
HDF said the take-or-pay capacity expansion will add Aus$400 million to its revenues over the 15 year contract. It is fighting an Aus$800 million takeover bid by APA Group, which, if successful, would give APA control of all major East Coast Australian gas pipelines.
Colin Atkin, CEO of HDF, said previous arrangements made pipeline users responsible for compressing their own gas. He said, “This new contract further validates our expectation that enormous value is to be realized on the South West Queensland pipeline from both domestic and international gas demand.”
For more information: www.hfm.com.au