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Highlights
- APA Group has started work on the second stage of its gas grid’s expansion.
- The expansion looks forward to adding 25% of capacity to the East Coast Gas Grid.
- AEMO Gas Statement of Opportunities highlighted the issue of potential gas shortfall in Victoria.
ASX-listed utility company, APA Group (ASX:APA), shared that it will begin with stage two of 25% expansion of the East Coast Gas Grid. The grid expansion aims to add circa 13% of capacity for the Southern States by 2024.
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About the second stage of expansion
Image source: © Stuartkey | Megapixl.com
In May 2021, APA announced the East Coast Grid pipeline network expansion. Reportedly, it would add a total of 25% capacity with a capital investment of circa AU$270 million.
APA said that the stage 2 expansion is expected to help during the peak winter demand. The winter peak capacity will be increased by additional compression and associated works on Moomba Sydney Pipeline and Southwest Queensland Pipeline.
According to the ASX-announcement, stage 1 would add 12% capacity. It is under construction. It is targeted for completion ahead of 2023 winters in the southern state.
Rob Wheals, managing director and CEO of APA, commented on the development that,
AEMO Gas Statement of Opportunities highlighted the issue of potential gas shortfalls in Victoria. The document suggested that gas shortfall could lead to demand curtailment, in which households will be asked to reduce their gas usage during extreme conditions.
Share performance of APA
Shares of APA have been volatile on Wednesday (25 May). During the early trading hours, the share price dipped to AU$11.33 per share, and at 2:44 PM AEST, the shares gained 0.69% to AU$11:67 apiece.
Noteworthy here is that the shares mirrored the movement of the benchmark index, ASX200 Utilities (XUJ) which was red in the morning and then buzzed into the green territory later. It was 0.92% up to 8,282.30 at the time of writing this article. In addition to this, the shares were in line with the broader index ASX200, which was 0.70% up to 7,178.40.
The stock closed 0.258% higher at AU$11.620 per share today.
The share prices have risen by 22.70% in one year, and the year-to-date gain is 14.15%. In the past six months, the shares have gained 20.54%.
About APA
APA is an ASX-listed energy infrastructure business that manages a diverse portfolio of wind, solar, electric and gas assets worth AU$22 billion. APA claims that it delivers around half of the countries’ gas usage. With investment in the electricity transmission assets, the company has established a connection between South Australia and Victoria, and Queensland and New South Wales.
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