We will continue to deliver an environmentally responsible, safe and essential service by:
- Contributing to policy and responding to climate change initiatives to promote the use of gas as essential to a cleaner energy mix.
- Including the environment in all investment and procurement decision-making, complying with our emissions reporting obligations, and conserving and rehabilitating the natural state of the land we disturb.
- Evaluating complementary clean energy projects.
- Meeting or exceeding the Australian Pipelines and GasAssociation ("APGA") Code of Environmental Practice.
- Engaged with government to promote the role of gas in a carbon constrained economy, directly and via industry associations.
- Participated for the fifth time in the Carbon Disclosure Project, a voluntary disclosure to investors on carbon emissions, liability, reduction activities, strategies and management. APA's overall score of 79D ranked highest amongst its direct peers.
- Continued to develop the wind and solar renewable energy projects at Emu Downs Wind Farm, subject to customer demand.
- Applied effective environmental practices such as soil erosion control, revegetation of disturbed land, ecological assessments and environmental audits at operational and project sites, leading to zero regulatory breaches.
- Completed a full review and audit of APA's current Environmental Management System and performance resulting in the development and approval of the APA Environmental Strategy and Improvement Plan, to commence implementation in FY2016.
ACTIONS FOR 2016
- Participate in policy discussions and promote the role of gas as an important contribution to reducing Australia's emissions.
- Maintain carbon market expertise and knowledge should energy markets shift to clean fuels such as wind, solar and gas.
- Evaluate wind and solar generation opportunities now that there is greater certainty in the federal Renewable Energy Target policy
- Continue to maintain and operate assets in accordance with environmental regulations.
- Commence implementation of the Environmental Strategy and Improvement Plan.
KEY SUSTAINABILITY RISKS
- Environmental risks - National, state and territory environmental laws and regulations affect the operations of APA Group's assets.
- Within the Health, Safety and Environment framework, APA has a strategic plan to ensure environmental risks are identified and managed via appropriate controls.
- This strategy includes compliance with the necessary environmental regulations which apply to APA businesses and assets.
- In-house operating and maintenance expertise.
In APA's view, gas-fired generation and renewable energy, predominately wind-powered generation andincreasingly solar generation, are technologies that can meet significant emission reduction targets for Australia.
NATIONAL GREENHOUSE AND ENERGY REPORTING
APA has a relatively small carbon footprint in the overall energy chain. APA's emissions are mainly the result of the combustion of natural gas in compressor stations and from fugitive emissions within our networks. In financial year 2014, APA reported scope 1 emissions of 311,421 tonnes under National Greenhouse and Energy Reporting and on 31 October 2015 APA expects to report emissions for this financial year broadly in line with this number.
CARBON DISCLOSURE PROJECT
APA participated for the fifth time in the Carbon Disclosure Project, a voluntary disclosure to investors on carbon emissions, liability, reduction activities, strategies and management. APA's score of 79 is ranked in the highest band for disclosure (>70), which states that "Senior management understand the business issues related to climate change and are building climate related risks and opportunities into core business". APA's performance score of D ranked consistently with the rest of the Utilities sector. APA could improve its performance score by setting and achieving carbon emission reduction targets. However, because APA's reduction activities rely on a strong carbon price, management will wait for further certainty on carbon legislation before committing resources to these activities. APA's overall score of 79D ranked second in the Utilities sector and highest amongst its direct peers.
CLEAN ENERGY POLICY
Carbon tax legislation was repealed effective from 1 July 2014 at which time APA ceased having a carbon liability.
APA continues to support reducing carbon emissions as a responsible risk mitigation response to climate change. APA has long supported the introduction of a price on carbon and certainty on carbon policy. However, the lack of effective domestic and international carbon policy has failed to provide the required certainty to shift large-scale coal generation to more carbon efficient gas-fired generation. In the longer term, as international and domestic carbon policy and markets mature, APA's assets will play an important role in meeting Australia's long-term emission reduction targets as energy consumption shifts from carbon intensive fuels, such as coal, to more carbon efficient fuels, such as natural gas.
APA supports the Renewable Energy Target ("RET") and was pleased to see bipartisan support for the amended Large-scale Renewable Energy Target ("LRET") to 33,000 GWhs per annum by 2020, providing greater certainty to investors in the energy market. APA advocates that any scheme beyond the amended LRET should include low-emission technologies.
EXPANDING OUR LOW EMISSION GENERATION PORTFOLIO
APA has interests in wind energy and low emission, state-of-the-art gas-fired generation. These investments provide solid returns and help lower carbon emissions in the Australian economy.
In FY2015 APA jointly commissioned, with AGL Energy, the 242 megawatt Diamantina combined cycle gas power station which is a low emission and efficient gas generating asset. Its carbon intensity is approximately 0.4 tonnes per megawatt hour, which is less than half the carbon intensity of the National Electricity Market. Now there is greater certainty in the RET, subject to customer demand, APA will progress the development of the 130 megawatt Badgingarra Wind Development Project adjacent to APA's Emu Downs Wind Farm, as well as the 20 megawatt Emu Downs Solar Project, a small expansion to the wind farm. Both projects are contingent on entering into a long-term off-take agreement and meeting APA's investment hurdles.
APA'S ENVIRONMENTAL STRATEGY AND IMPROVEMENT PLAN
At APA we aspire to provide a Zero Harm work environment which extends to people that work directly and indirectly for APA as well as the communities and environment where APA infrastructure operates. In FY2015, APA undertook an extensive review and audit of our current Environmental Management Systems as part of the Health, Safety and Environment Strategic improvement Plan with the objective to standardise and enhance processes throughout our national operations. Our ultimate goal is the protection of the environment by reducing the impact of our operations to Zero Harm as we help to meet Australia's growing energy needs.
The audit resulted in the development of the APA Environmental Strategy and Improvement Plan consisting of 12 initiatives which will be rolled out over FY2016-FY2017. This environmental framework supports APA's Health, Safety and Environment Management System known as Safeguard. The initiatives include system reviews, improved training and standard procedures, control measures, environmental monitoring and a structured audit program.
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.