APA Group (ASX:APA), Australia’s largest natural gas infrastructure business, today announced it has entered into commercial agreements that will underpin a $50 million capacity expansion of its Roma Brisbane Pipeline to meet the increased demand  for new transport services for its customers in Brisbane.

Design and procurement activities for the expansion project are already underway with the expansion scheduled to be completed in the second half of 2012.  The capacity of the Roma Brisbane Pipeline will be increased by approximately 10 per cent as a result of this project.

This expansion will involve the installation of an additional compressor at the Dalby Compressor Station, duplication of a 6 km section of the Roma Brisbane Pipeline and works which will allow the pipeline operating pressure to be increased.

The additional capacity has been substantially contracted under long term transportation agreements with an energy retailer and a major industrial gas user.

APA Managing Director Mick McCormack said the Roma Brisbane Pipeline’s capacity has been increased incrementally for the last 30 years in line with the growth in demand for gas. 

 “This expansion continues the trend of growth for this pipeline, now with more than five times its original capacity.  With the increasing use of natural gas in Australia’s energy mix, we don’t see this trend abating.

“The Roma Brisbane Pipeline is Australia’s oldest natural gas pipeline.  However, the expansion clearly demonstrates that it continues to be a vital piece of energy infrastructure in Queensland,” he said.