Epic told the market yesterday that it had committed to the $64 million expansion after AGL exercised an option regarding the supply of an additional 230 petajoules of gas per day for at least 12 years.
The additional compression to the SWQP will increase its capacity to approximately 220TJ/d.
The deal follows an earlier supply arrangement between the two companies in July, which prompted Epic to announce it was constructing a 180-km million pipeline to link the Queensland, South Australia and New South Wales gas markets.
Under the latest agreement, AGL has the option to extend the gas supply by at least four years.
Initial gas deliveries are expected to begin by January 2013.
