We will deliver value to our customers and create responsive solutions to meet their needs by:
- Providing market-leading flexible solutions to meet our customer's changing requirements, including responding to critical events on assets we own and/or operate to enable customers to better manage their gas portfolios.
- Delivering value to customers by efficiently and reliably utilising the capacity of APA's infrastructure assets.
- Working with customers to provide optimal investment and energy market solutions.
- New agreement negotiated to support further capacity expansion of the Victoria - New South Wales Interconnect, the fourth expansion in two years. The new agreement was signed in July 2015 with the cost of the expansion approximately $85 million, increasing capacity between Victoria and New South Wales by 30 TJ per day.
- APA is in the final bidding stage of the Northern Territory Government's competitive process to potentially construct the pipeline linking prospective gas reserves in the Northern Territory to east coast demand. During the year, we continued to progress our feasibility study on this potential link which we commenced in early 2014. This work has significantly contributed to our bid in the government process.
- Ongoing work on compression and pipeline projects to provide bi-directional gas transportation services on the East Coast Grid. This will enable APA to provide our customers with flexible services.
- Entered into a number of flexible agreements which incorporate multiple receipt and delivery points on the East Coast Grid.
- Continued to offer web-based capacity trading services to facilitate trades between sellers and buyers of capacity.
- Commissioned the Diamantina Power Station Project in Mount Isa which secures the power supply needs of North West Queensland.
- Continued to extend and develop flexible gas storage services utilising the Mondarra Gas Storage Facility.
- Signed two long term agreements with AngloGold Ashanti which have underwritten the construction of the new 293 kilometre Eastern Goldfields Pipeline (executed June 2015). Construction is well advanced on the new pipeline with commissioning on track for prior to January 2016.
ACTIONS FOR 2016
- Continue to offer flexible transportation and storage services and innovative solutions to meet our customers' requirements.
- Maximise use of existing assets and profitably continue to expand APA's asset portfolio in order to meet customers needs.
- Commence and progress the further expansion of the Victoria - New South Wales Interconnect.
- Complete construction of the 293 kilometre Eastern Goldfields Pipeline (completion expected December 2015).
- Complete construction of the new South Metro gate station off the Parmelia Gas Pipeline, enhancing gas security of supply for metropolitan Perth (completion expected December 2015).
- Complete migration of APA's gas transmission pipeline assets to the Integrated Operations Centre ("IOC"), to holistically manage day to day operations.
KEY SUSTAINABILITY RISKS
- Demand for gas - The volume of gas that is transported by APA is dependent on end-user demand. The relative price of gas and its competitive position with other energy sources (such as electricity, coals, fuel oil, renewable sources) may change demand levels for services on APA's assets.
- Long-term agreements with strong counterparties underpin assets.
- Flexible customer solutions.
- Complementary investments in gas storage and power generation and continued evaluation of emerging fuels such as investment in wind farms.
- Supply of gas - Availability of competitively priced gas is essential for ongoing use of gas infrastructure assets.
- Long term agreements with strong counterparties underpin assets.
- Connect more gas resources with more gas markets such as:
- > East Coast Grid provides flexibility for customers to manage their gas portfolios.
- > Expansion of interconnect between Victoria and New South Wales.
- > Develop the business case for the Northern Territory Link.
- > Working with new / emerging gas producers to bring new gas supply to market.
- Counterparty - If a counterparty is unable to meet its commitments to APA, there is risk that future anticipated revenue would be reduced unless and until APA is able to secure an alternative customer.
- APA operates assets in accordance with all relevant regulations and standards.
- In-house operating, maintenance and engineering expertise.
- Operations - APA and our asset management customers are exposed to a number of operational risks such as equipment failures or breakdowns, rupture of pipelines and technological failures.
- Debt and equity - Ensuring continued support from debt and equity markets for ongoing capital requirements. Inability to secure new debt facilities at appropriate quantum and price may adversely affect APA's operations and/or financial position and performance.
- Economic regulation - APA may be negatively impacted as a result of a change in regulatory settings.
- Regulatory regime is well understood and encapsulated in national law.
- The reset dates of APA's price regulated assets are staggered, with on average one review each year.
- Composition of asset portfolio is optimised to manage exposure to regulator settings.
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.