APA Group (ASX:APA) is on investors’ radar; here's why

Highlights

• APA Group has secured a federal government grant for ramping up the provision of gas infrastructure related to Central Petroleum's project.
• APA shares were grabbing investors' attention today as around 400k shares were already traded during the first hour of trade.
• APA shares have gained almost 4% in past one year.

The shares of APA Group (ASX:APA) traded slightly lower (1.517%) at AU$10.390 per share on the ASX today (6 April) at 10:45 AM AEST. Approximately 359,235 shares of APA Group were traded during the initial hour of trading session on the ASX.

The share price of APA Group has gained over 4% on the ASX over the past 12 months. On the other hand, APA Group's year-to-date share price gained over 3% on the ASX.

What has impacted APA Group's share price on the ASX?

On 4 April 2022, Central Petroleum Limited (ASX:CTP) announced that the Federal Government had identified Project Range as a priority infrastructure project. As a result, the government offered a targeted grant to APA Group to ramp up the provision of gas infrastructure. It will further support the project range with a focused pre-financial investment decision activity.

The Range Project is a coal seam gas project located in Queensland. Central Petroleum holds a 50% interest in the Range Project through its joint venture with Incitec Pivot Limited (ASX:IPL).

Image source: © Olivier26 | Megapixl.com

The Managing Director and Chief Executive Officer of Central Petroleum, Leon Devaney, said that the grant would offer some genuine enthusiasm and energy for the Range Gas Project. Although the exact amount of the funding has not been declared yet, the company assumes that the size of the grant will have a material impact on its efforts to progress a third-party infrastructure delivery model for gas plants and pipelines with APA.

Leon also said that it's two step-out appraisal wells which will be online very soon. Therefore, the financial boost from the grant to complete the activities necessary for FID is extremely well-timed. He mentioned that it's great to see that the Federal Government has recognised Range as a priority gas infrastructure project to supply gas into the tightening east coast gas market.

Leon further added that the recent market dynamics are only adding further interest in the company's soon to begin appraisal production test at Range and the five gas exploration wells to be drilled in the Amadeus Basin, all of which are scheduled to be delivered through this year and next.

Read more: What caused APA share prices to hit 52-week high on ASX?

About APA Group:

APA Group is an ASX-listed energy sector company that deals with the infrastructure business of natural gas and energy. The company is primarily responsible for owning and operating energy infrastructure assets and businesses, including gas pipelines network across Australia and offers asset management services for its energy assets and investments to third parties. APA Group consists of two staple entities, including Australian Pipeline Trust and APT Investment Trust.