At APA, the diversity and depth of our skills and thinking sets us apart from our peers and therefore our expertise is sought after by asset owners. Under long term agreements, APA provides asset management and operational services to the majority of its energy investments and to a number of third parties.
Our main customers are Australian Gas Networks Limited (“AGN”, formerly Envestra Limited), Ethane Pipeline Income Fund, Energy Infrastructure Investments and GDI (EII) Pty Ltd (“GDI”). In August 2014, APA sold its 33.05 per cent interest in AGN. APA retained its operation and management agreements with AGN which run to 2027. Contracts with other customers to provide operational, management and/or corporate support services range from 5 to 20 years.
GROWING OUR CUSTOMERS’ BUSINESSES
It has been a busy year for APA’s 550 Network employees and 950 contractors. A number of growth projects commenced or continued during FY2015 have required new connections for homes and businesses throughout eastern Australia. Currently, the total new customer connection potential is almost 140,000 homes and businesses in future years. APA works closely with customers, developers and government bodies to promote natural gas as the preferred choice of energy, thereby increasing the utilisation of our customers’ networks. In FY2015, over 28,000 new connections were added to existing networks.
Two of the most recent growth project approvals include North Harbour near Caboolture Queensland and McLaren Vale in South Australia. As capital cities become more crowded and expensive to live in, combined with improved transport links, high speed internet technology and flexible work options, new growth corridors centred around lifestyle, community and affordable housing are being developed, providing opportunities for APA to organically grow its business.
The North Harbour development located in the corridor between Brisbane and the Sunshine Coast includes a 2,200 residential lot housing estate and a marina with associated facilities, a neighbourhood shopping centre and lifestyle amenities. There are 400 residential lots for the development of apartments and townhouses and a 170 hectare business park development with a mix of industrial and commercial lots.
McLaren Vale, located 35 kilometres south of Adelaide, is an important centre for the tourism, wine and food production industries, that is very similar to Tanunda, also in South Australia, which APA connected to natural gas during the year. APA has commenced activities to construct the six kilometre high pressure gas supply main to bring reticulated natural gas to McLaren Vale, with an estimated 1,500 to 2,000 connections expected in future years.
NETWORK ASSETS OWNED AND /OR OPERATED BY APA
- New Connections 28,535
- Total Connections 1,317,323
Natural Gas Distribution Networks:
- New Pipelines 349km
- Replacement Pipelines 541km
- Total Pipelines Managed 28,535
- Gas Transported 120PJ
MAKING IMPORTANT CONNECTIONS
During the financial year, APA also completed connecting natural gas to Adelaide’s new state of the art Royal Adelaide Hospital, due to open in 2016. One of the design features is natural gas supply connections from two different locations on the gas network to mitigate the risk of interruption to the supply of gas which is an essential energy source for the functioning of the hospital.
We have also commenced the pre-work for providing connection facilities for the Parklands Project, which will be utilised as the Commonwealth Games Village during the Gold Coast 2018 Commonwealth Games. The redevelopment of the Parklands precinct in Southport is one of the largest urban renewal projects ever undertaken on the Gold Coast. Natural gas is being used to supply bulk hot water and cooking to apartments, pool heating and catering. Once the Commonwealth Games are finished, the site will form the key residential, commercial and retail sector of the Gold Coast Health and Knowledge Precinct.
Maintaining a safe and reliable supply for customers is one of our key operational objectives. APA is able to access and utilise all of its business units and capabilities across Australia from transmission and network services, LNG supply and vaporisation plants, storage and compression capacity and compliance and communication specialists, which is particularly critical during emergency response events.
During the year, APA responded to a major disruption of gas supply to the cities of Port Pirie and Whyalla in South Australia caused by a rupture on the Moomba Adelaide transmission pipeline. APA operates and maintains the South Australian natural gas network, which is connected to this pipeline, on behalf of Australian Gas Networks. With APA’s experience and quick response, some gas was able to be preserved in the network to continue an emergency supply to both cities’ hospitals. Furthermore, APA’s Asset Management team was able to call on help from other APA teams to assist with managing the crisis. APA organised LNG supplies from its Dandenong storage facility to be transported across the border by tanker and injected into the network so that basic needs could be maintained for the communities during the week long disruption. APA transmission services also provided support to the operator of the Moomba Adelaide Pipeline, assisting with repairing the ruptured section. As a fully integrated business, we are able to add-value to the individual services we provide to customers.
“On behalf of Australian Gas Networks, I would like to acknowledge APA for its excellent performance during the interruption to gas supplies in Port Pirie and Whyalla in April. The APA teams at Kidman Park and on site showed outstanding commitment and professionalism throughout the incident period and the efforts to keep the two hospitals supplied with compressed natural gas and LNG and to provide hot showers and food to the community are to be commended.”
IN THE PIPELINE
2016 - BEYOND
We only look forward at APA as to what opportunities for growth lay ahead, never resting on our laurels of what we've achieved. However, we also believe it's healthy to acknowledge our significant growth and success since listing 15 years ago. That's why our celebratory timeline starts at financial year 2015 - like you, we're keen to see what's next in 2016 and beyond, but we're proud of our achievements over the last 15 years.
MARKET CAP $9.2B
SECURITY PRICE $8.24
Wallumbilla Gladstone Pipeline acquisition, underpinned by
20 year take-or-pay gas transportation agreements. APA's largest acquisition
Diamantina and Leichhardt Power
Stations officially opened, underpinned
long term electricity supply contracts until 2030.
SECURITY PRICE $5.73
2013 - 2011
Maximising the value of APA's portfolio through consolidation and expansion - we're more than the sum of our parts.
Completed acquisition of Hastings Diversified Utilities Fund. Creation of APA's East Coast Grid through the addition of the South West Queensland Pipeline. Emergence of the West Coast Grid with acquisition of Pilbara Pipeline System.
Commenced expansion of APA's compression capacity at the Wallumbilla Gas Hub.
Capacity expansion of the Goldfields Gas Pipeline.
Emu Downs wind farm acquisition in the Perth area energy precinct, underpinned by 20 year electricity supply contracts.
Acquisition of the Amadeus Gas Pipeline in the Northern Territory.
Fivefold capacity expansion of Mondarra Gas Storage Facility in the Perth area energy precinct.
Capacity expansion of the Roma Brisbane Pipeline.
SECURITY PRICE $3.45
2010 - 2009
APA obtained investment grade credit ratings from Standard & Poor's (June 2009) and Moody's (April 2010).
2010 - 2008
Enhanced APA's asset footprint by means of capacity expansion, pipeline development and acquisitions.
Acquired the Berwyndale to Wallumbilla Pipeline.
Established Energy Infrastructure Investments (EII) for APA annuity style assets.
Completed construction of the Bonaparte Gas Pipeline.
Acquired the Central Ranges Pipeline.
2007 - 2006
Start of ongoing acquisition and development of complementary assets for the APA portfolio.
APA fully internalised asset management and operational services.
APA acquired Origin Energy Network (Jun/Jul 2007) assets including interests in SEA Gas Pipeline and the Envestra gas distribution network along with the long term operations and management contract for Envestra assets.
APA completed construction and commissioning of Daandine (Jan 2007) and X41 (Nov 2007) Power Stations.
APA completed construction and commissioning of Kogan North (Mar 2006) and Tipton West (Mar 2007) gas processing facilities.
APA acquired the Murraylink (Mar 2006) and Directlink (May 2007) electricity interconnectors.
Acquisition of the Victorian Transmission System (formerly GasNet).
Acquisition of Allgas gas distribution network in Queensland.
2005 - 2001
Period of acquisition of minority interests in major APA pipelines consolidating our ownership positions across Australia.
Acquired the remaining 30% interest in the Carpentaria Gas Pipeline.
SECURITY PRICE $3.45
Goldfields Gas Pipeline interest increased to 88.2%.
Acquired Mondarra Gas Storage Facility, along with the Parmelia Gas Pipeline.
Acquired the remaining 15% interest in the Roma Brisbane Pipeline.
SECURITY PRICE $2.10
13 JUN 2000
APA was listed on the Australian Stock Exchange. Foundation contract was on the only 100% owned Moomba Sydney Pipeline.