Energy infrastructure business APA Group is buying a major Queensland LNG pipeline for $US5 billion ($A5.41 billion).
APA has entered into an agreement to buy the connection between gas fields in the Surat Basin and the QCLNG project on Curtis Island, near Gladstone.
The company will carry out a $A1.84 billion capital raising to help fund the project, with the rest of the funds coming from a $US4.1 billion debt facility.
APA shares have been halted from trade while it completes an entitlement offer to shareholders.
Meanwhile, the company said it was on track to achieve its 2014/15 earnings guidance of between $A1.17 billion and $A1.19 billion, excluding the impact of the pipeline acquisition.
Managing director Mick McCormack said the acquisition would allow the company to benefit from Queensland's growing LNG sector, which is set to become a major exporter in 2015.
"The acquisition of the QCLNG pipeline allows APA to obtain exposure to the globally significant east coast LNG sector and expands APA's contracted revenue base with revenue from highly creditworthy counter-parties under 20 year take-or-pay contracts."
Australia's LNG exports are expected to rise 70 per cent in 2015, thanks in part to the QCLNG project.
Share
