Australian Pipeline Trust (APA) has today signed an agreement to purchase the South West Queensland Producers’ 30 per cent interest in the Carpentaria Gas Pipeline (CGP) for $98 million, not including transaction costs.
The transaction means that APA now has full ownership of the 840 km pipeline which links the Ballera gas fields in south-west Queensland to the WMC Fertilisers Phosphate Hill operations, BHP Billiton’s Cannington mine, Xstrata’s Mt Isa mine and CS Energy’s Mica Creek power station near Mt Isa.
The South West Queensland Producers include Santos, Origin and Delhi.
Managing Director Jim McDonald said: “The acquisition of the remaining 30 per cent ownership in the pipeline is consistent with APA’s strategy of acquiring minority interests in our existing pipelines.”
“The sale will be funded from existing debt facilities and results in a gearing level (debt/(debt and equity)) of approximately 65 per cent. The acquisition will be cash flow and earnings per unit accretive from year one.”
“This transaction, combined with our recent acquisition of the SCP Group pipeline assets in Western Australia further diversifies our portfolio of pipelines in our overall revenue mix.”
APA’s Chief Operating Officer Michael McCormack said: “The CGP is currently the only source of gas supply to the mineral rich Carpentaria region and is an essential piece of infrastructure.”

J K McDonald
Managing Director