SYDNEY, AUSTRALIA: APA Group (ASX: APA), a leading Australian energy infrastructure business, and Empire Energy Group (ASX: EEG), an oil and gas exploration and production company, have signed an initial agreement to progress works associated with the development of Empire Energy’s Carpentaria pilot project.
The project seeks to connect Empire Energy’s acreage in the Beetaloo Basin, a prospective shale gas resource in the Northern Territory, to the existing McArthur River Mine Pipeline.
The initial agreement will allow APA Group to commence pre-engineering studies to potentially develop gathering pipelines, gas processing infrastructure and transmission pipeline infrastructure. The project is subject to further negotiations and approvals by each party. It is planned to agree to a longer-form early works agreement in the coming months, which would see APA Group spending up to $5 million on engineering work and potentially early land access approvals in FY2024.
The project aims to establish a link from the Beetaloo Basin through to APA Group’s Amadeus Gas Pipeline, which supplies gas to Darwin, Alice Springs and regional centres in the Northern Territory. The project also envisages the potential connection of the Beetaloo Basin to the east coast gas market, where there is a growing demand for natural gas as a transition fuel for backing renewable energy.
APA Group CEO and Managing Director Adam Watson said: “Delivering the next wave of domestic gas supply to support Australia’s energy markets will be critical to achieving energy security and delivering the energy transition in an affordable and sustainable way. As coal continues to exit the Australian energy market, natural gas will be essential for backing renewable energy to ensure we reach our decarbonisation ambitions, without impacting system reliability, security and affordability. The Beetaloo development will be critical to achieving this. As we begin these initial studies, we are committed to working closely with landholders, First Nations stakeholders, communities, councils and governments to ensure this project is progressed in a responsible way.”
Empire Energy CEO Alex Underwood said: “We are pleased to have entered into this initial agreement with APA Group, which demonstrates their confidence in our Carpentaria pilot project and the Beetaloo Basin as a world-class gas resource. This agreement will enable us to leverage APA Group’s expertise and experience in developing and operating energy infrastructure in Australia. We look forward to working with APA Group in the Beetaloo Basin to progress potential pipeline solutions and help boost gas supply across the Northern Territory and the east coast of Australia.”