The following announcements by APA today pave the way for the...

The following announcements by APA today pave the way for the FID on Crib point LNG import facility which IMO will put downward pressure on gas prices.

1.00 APA to Develop Crib Point Packenham Pipeline for AGL’S LNG Import Facility

https://hotcopper.com.au/threads/ann-apa-to-develop-crib-point-packenham-pipeline.4239613/?post_id=33643066
Extracts…
APA Group (ASX:APA) today announced it has entered into a Development Agreement (DA) and an associated 20 year
Gas Transportation Agreement (GTA) with AGL Energy (ASX:AGL) for the development and construction of the Crib Point Packenham Pipeline. APA’s capital expenditure for the pipeline is currently estimated to be in the range of $160 to $200 million. The transaction is subject to AGL achieving a final investment decision (FID) on the development of an LNG floating storage regasification unit (FSRU) and related offshore facilities during FY2019. If the AGL project proceeds, first gas delivery into the domestic market is expected during FY2021.


APA has been working with AGL since October 2017 on the prospective project to develop a pipeline route for the Crib
Point Packenham Pipeline.

The new pipeline would be approximately 60 kilometres in length with a capacity of at least 550 TJ/day, connecting AGL’s proposed FSRU at Crib Point into APA’s 7,500 kilometre East Coast Grid via the Victorian Transmission System. “Increased certainty of supply for domestic users helps put downward pressure on prices which should benefit Australian consumers. With government restrictions on gas production in some states, shipping-in the much needed resource is a smart solution.”


2.00 AGL reaches key milestones for proposed LNG import jetty
https://hotcopper.com.au/threads/ann-agl-reaches-key-milestones-for-proposed-lng-import-jetty.4239709/?post_id=33643690
Extract…
“AGL Managing Director & CEO, Andy Vesey, said: “The Crib Point LNG Import Jetty project has significant potential to provide AGL with the ability to deliver a new flexible source of gas supply to the southern states of Australia. This will deliver liquidity, increasing competition to put downward pressure on wholesale prices and provide much needed capacity and long-term security of supply.

Regards OGP