APA Group (ASX:APA) signs deal for Hunter Power Project, shares fall

2 min read | June 20, 2022 12:32 PM AEST | By Bhawna Gupta

APA Group (ASX:APA) signs deal for Hunter Power Project, shares fall — Image source: © Photoshow | Megapixl.com

More about the agreement

APA will construct, own, and operate the Kurri Kurri Lateral, a 20-kilometre gas transmission pipeline connecting the Sydney to Newcastle Pipeline to the Hunter Power Project at Kurri Kurri in NSW, as well as a 70 TJ gas storage facility to serve the Hunter Power Project, both of which are expected to be completed by late 2023.

The Gas Transportation and Storage Agreement with Snowy Hydro could be extended for another ten years.

Source: © Alexh | Megapixl.com

The project is contingent on APA gaining certain third-party permissions for the development and operation of the APA facilities (including acquiring a pipeline licence) and Snowy Hydro agreeing to various development matters.

The project's entire construction expenses are now anticipated to be around $264 million by APA. Detail engineering design, projected to be finished by late 2022, will determine the final capital expenditure. APA has collaborated extensively with Snowy Hydro to guarantee that the Kurri Kurri Lateral is hydrogen-blend ready, as well as a commitment to procure electric drive compressors to reduce emissions.

When the pipeline connection, storage, and compressor station construction overlap, APA anticipates that over 400 individuals will be employed.

Also Read: APA Group (ASX:APA) shares gain over 3% on AU$1B loan facility

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