AGL to Develop Berwyndale to Wallumbilla Gas Pipeline

AGL Energy Limited has entered into an agreement with Queensland Gas Company to acquire the rights to develop and, subject to gaining the necessary approvals, construct the Berwyndale to Wallumbilla gas pipeline in southeast Queensland, Australia.

Under the terms of the agreement, Queensland Gas Company (QGC) has an option to take a 50% share in the pipeline project. If QGC exercises its option an unincorporated joint venture will be formed between AGL Energy Limited (AGL) and QGC to own and operate the Berwyndale to Wallumbilla gas pipeline (BWP).

The 115km, 400mm high-pressure pipeline will be constructed to run from a point approximately 8.5km east of the township of miles adjacent to the Condamine Power Station, which QGC is constructing, to the Wallumbilla gas hub. The BWP is planned to be operational by January 2009 and is expected to cost approximately A$70 million. AGL will fund the investment through existing cash reserves and debt facilities.

Michael Fraser, managing director of AGL, said: “AGL considers the BWP will provide the optimum long-term commercial outcome for AGL to transport gas from QGC to access western Queensland and southern markets. The BWP will provide a long-term gas transportation solution for AGL to support the QGC contract over the period 2009 to 2027, and will also provide AGL with significant flexibility and options over future capacity, including access to gas parking and gas lending services.”