The Chief Executive Officer of APA, Mr Jim McDonald, today announced the acquisition of the remaining 15% interest in the Roma-Brisbane Pipeline (RBP) from its joint venture partner, Interstate RBP Pty Limited. The sale is conditional on Queensland Ministerial approval.

The 440 kilometre Roma Brisbane Pipeline is a significant asset of the APA Group transporting gas for consumption by a broad range of industrial, commercial and residential users in the South-East Queensland market.

"The purchase price for the acquisition of the remaining interest is confidential, but is consistent with the valuation of the RBP at the time of the Float of APA."

"The acquisition reflects the APA prospectus plan to acquire minority interests where feasible. The investment is earnings positive for APA and will improve over time with the reduction of cost of joint venture management, and increased usage," Mr McDonald said.

Mr McDonald acknowledged the contribution of its joint venture partner over the many years of the relationship.

Mr McDonald also announced the successful completion of construction and commissioning of the $20 million plus, 110 kilometre Peat Lateral which enters the RBP at the Condamine compressor station and which will deliver coal seam methane (CSM) into the Brisbane market place. This source of CSM is the largest delivered into the RBP and is destined to be used as fuel for power generation at BP's Bulwer Island Clean Fuels Project. The lateral was constructed by Agility Team Build, a subsidiary of The Australian Gas Light Company.

APA has previously announced an extension of the Peat Lateral to provide access to the RBP system for an additional source of CSM from Scotia. This project will involve a 15 kilometre extension from Peat to Scotia and is expected to be completed in early 2002.