Absolutely does.The underpinning rationale for this investment...

Absolutely does.
The underpinning rationale for this investment is the creation of a gas storage business as
part of AGL??s integrated strategy underpinned by contractual arrangements with the BG
Group that will support the development of their Curtis LNG Project.??

Acquisition Rationale
The acquisition would support a Gas Storage Project Development Agreement entered into
between AGL and Queensland Gas Company Limited (??QGC??, a BG Group Company),
involving the development by AGL of a gas storage project at Mosaic??s depleted Silver
Springs gas fields in the Surat Basin in central Queensland.
Under the gas storage services agreement:
?? AGL will manage and fund the development, installation and operation of a gas storage
facility at the Silver Springs / Renlim Gas fields. The facility is anticipated to be
operational by April 2011. QGC will make a capital contribution to AGL to support
development of the gas storage facility; and
?? AGL will provide QGC with gas storage services over a period of up to 7 years;
?? AGL will deliver gas to QGC from storage by swapping gas at Berwyndale with an equal
amount of gas which QGC is required to deliver to AGL under AGL??s existing long term
gas sale agreement with QGC.
After the expiry of the contract, AGL will have exclusive use of the gas storage facility,
which is located near Wallumbilla, providing AGL with flexibility and optionality over the
use of its wholesale gas portfolio.


Also mentioned in the latest analyst briefing.
RAB