Page 14 - AsianOil Week 21 2022

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expansion of the East Coast Gas Grid, which APA’s decision to commence the stage 2 use of gas during forecast extreme peak day
will add around 13% of capacity for southern expansion is driven by strong confidence in events’,” Mr Wheals said.
states ahead of peak winter demand in 2024. stage 1 contracting and due to anticipated “APA is playing a critical role in delivering
This second stage is part of APA’s East continuing customer demand for additional energy security for southern gas
Coast Grid pipeline network expansion transportation capacity. The second stage of markets ahead of forecast supply risks through
announced in May 2021, which will add the expansion works is currently targeted for these staged investments in the East Coast
a total of 25% capacity at a total capital commissioning ahead of the forecast potential Grid. Pipeline gas is also lower emissions than
investment of around $270 million. winter 2024 shortfalls. gas proposed to be supplied by east coast LNG
Stage 2 is expected to help address APA Group CEO and Managing Director, import terminals, and more cost effective
potential peak winter shortfalls identified Rob Wheals, said the commencement of given the strong global demand for LNG.
in the 2022 AEMO Gas Statement of the second stage recognised the critical “Today’s announcement underscores the
Opportunities by increasing winter peak importance of natural gas to southern competitiveness of APA’s East Coast Grid and
capacity of the East Coast Grid by 13% markets. the critical role it plays in delivering value for
through additional compression and “The vast majority of residential gas our customers and for the economy through
associated works on both the South West customers in Victoria use gas to cook with cost effective, safe and reliable transportation
Queensland Pipeline (SWQP) and Moomba and to heat their homes in winter. AEMO’s of Australian domestic gas from northern gas
Sydney Pipeline (MSP) – while stage 1, 2022 GSOO flagged potential gas shortfalls producers to southern markets.”
which will add 12% capacity, is already under in Victoria from as early as winter 2023 and APA GROUP, May 25, 2022
construction and targeted for completion suggested that in extreme conditions, this
ahead of forecast southern state supply risks in could result in demand curtailment, including
winter 2023. asking households to ‘voluntarily reduce their

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