• Deliver ~24% increase in north-to-south gas transport capacity
• Add new southern markets storage to support gas-powered generation
• Unlock gas reserves in northern basins to meet projected demand

APA Group (ASX:APA) has announced a five-year East Coast Gas Grid (ECGG) Expansion Plan to deliver a ~24% increase in north-to-south gas transport capacity and new southern markets storage to help ensure lower cost and lower emissions domestic gas is available to meet East Coast gas demand and support the delivery of new gas-powered generation. The Plan includes two immediate enhancements that have reached Final Investment Decision (FID), including the Moomba to Sydney Ethane Pipeline conversion project and the MSP off-peak capacity expansion project. The medium-term projects that are progressing with early works will add material further north-to-south gas transport capacity and storage, including the proposed Bulloo Interlink pipeline, new southern market gas storage, and capacity upgrades into the Victorian Transmission System. The Plan is designed to ensure there is sufficient capacity for domestic gas to supply southern market demand, to avoid the market shortfalls otherwise forecast by AEMO and the ACCC. The initial investment and the early works funding form part of APA's ~$1.8 billion development pipeline and will be funded from APA's existing balance sheet.

The Expansion Plan's initial investment of ~$75 million over the next two years has been committed, including ~$40 million to immediately deliver two enhancements to the ECGG. The remaining ~$35 million will fund early works on Stages 3, 4, and 5 of the Plan, to support the development of new ECGG expansion and storage projects that will be developed over the medium-term.

The Plan can be delivered in stages, incrementally satisfying demand to minimise costs to consumers. Project FID for Stage 3, 4 and 5, will be conditional on early customer support, APA Board approval and any required regulatory approvals. The costs to deliver Stages 3, 4 and 5, along with funding arrangements, will be disclosed once these conditions have been met and FID taken.