SYDNEY: APA Group (ASX: APA) announced Wednesday that it has entered into a binding agreement to acquire the Atlas to Reedy Creek Pipeline (ARCP) from Senex CSG Assets Pty Ltd for $110 million.
ARCP, a 56-kilometer gas transmission pipeline in Queensland’s Surat Basin, transports gas from Senex’s Atlas East Compression Facility to APA’s Reedy Creek to Wallumbilla Pipeline. The acquisition, set to close in June, aligns with APA’s strategy to expand its East Coast Gas Grid.
APA Chief Executive Adam Watson said the deal underscores continued growth opportunities in gas transmission infrastructure.
“This agreement highlights the strong demand for secure and reliable gas supply as we continue to build critical infrastructure supporting Australia’s energy transition,” Watson said.
Under the terms of the acquisition, APA will enter a 20-year take-or-pay gas transportation agreement with Senex Assets Pty Ltd for 60 terajoules per day, with inflation-linked revenue and provisions for capacity expansion. The deal is expected to contribute approximately $12 million in EBITDA in fiscal 2026 and will be funded through APA’s existing balance sheet.
APA, one of Australia’s largest energy infrastructure companies, owns and operates a portfolio of gas, electricity, wind, and solar assets.