Australian Pipeline Trust (APA) and TransAlta Energy Australia (TEA) today announced the purchase by APA of TEA’s interest in the Goldfields Gas Transmission Pipeline (GGT) in Western Australia, effective 1 January 2003.
The transaction increases APA’s holding in the GGT to an effective 48.5%. The acquisition will be funded from existing line of credit and will be earnings accretive from day one.
Mr Jim McDonald, Managing Director of APA said “the total transaction cost are expected to be $25 million and is consistent with APA’s investment criteria. The purchase conforms with our strategy of acquiring minority interests in pipelines in which APA has an interest”.
Mr McDonald commented, “the GGT pipeline provides an essential energy supply to the minerals province of Western Australia which lies between the Pilbara in the north and the Kalgoorlie gold and nickel rich province in the south. The pipeline, which was
commissioned in 1996, is an important element in the delivery of competitively priced
natural gas to Western Australian mines.”