Gas Infrastructure MOU with APA Group
Sydney, Oct 27, 2021 AEST (ABN Newswire) - Empire Energy Group Limited (
ASX:EEG) (EEGUF:OTCMKTS) is pleased to announce that it has executed a transportation services memorandum of understanding ("MOU") with APA Transmission Pty Ltd, a wholly owned subsidiary of APA Group Limited ("APA"). APA is a leading Australian energy infrastructure business and its continuous network of gas pipelines on the east coast access all the principal east coast markets including Gladstone, Brisbane, Mount Isa, Wallumbilla, Sydney, and Melbourne. APA owns the Amadeus Gas Pipeline in the Northern Territory.
APA and Empire have executed the MOU to explore opportunities to enter appropriate development and commercial agreements for APA to build, own and operate gathering, production, processing, and transportation infrastructure for the movement of gas and liquids from Empire's Northern Territory assets.
APA and Empire will also promote a 'common user' model for development of the Beetaloo Sub-basin infrastructure to drive economies of scale benefits and lower cost per unit charges. In addition, APA proposes a staged and incremental development approach for the Beetaloo Sub-basin, thereby leveraging its network to reduce the required initial capital investment and align the pace of upstream development.
The MOU does not restrict Empire from engaging, negotiating and entering into agreements for use of the McArthur River Gas Pipeline.
Northern Strategy
APA's Northern Strategy envisages expansion of the Amadeus Gas Pipeline through additional gas compression augmenting the Northern Territory Government's plans for development of gas supported manufacturing industry and LNG export expansion at Darwin.
Eastern Strategy
APA's Eastern Strategy includes development of a greenfield pipeline between the Amadeus Gas Pipeline and Carpentaria Gas Pipeline at Mount Isa to bring gas to southern markets to help address predicted future shortfalls in both domestic market and LNG export capacity at Gladstone. The proposed new Beetaloo pipeline will become part of the existing APA gas distribution network and be the most capital efficient model for connecting the Beetaloo Sub-basin to market.
APA will outline its Beetaloo infrastructure plans later today at the South East Asia Australia Offshore & Onshore Conference ("SEAAOC").
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About Beetaloo Energy Australia Limited
Beetaloo Energy Australia Limited (ASX:BTL) (OTCMKTS:EEGUF) holds 28.9 million acres of highly prospective exploration tenements in the McArthur Basin and Beetaloo Sub-basins, Northern Territory. Work undertaken by the Company since 2010 demonstrates that the Eastern depositional Trough of the McArthur Basin, of which the Company holds around 80%, has enormous conventional and unconventional hydrocarbon potential. The Beetaloo Sub-basin, in which Beetaloo Energy holds a substantial position, has world-class hydrocarbon volumes in place and a ramp up in industry activity to appraise substantial discoveries already made by major Australian oil and gas operators is ongoing.
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