The gas will be for the ultimate use of brickmaker Austral Bricks whom ARC currently supplies direct.

Arc said from 1 July, Western Power will perform the retailing, shipping and distribution services for Austral Bricks with ARC supplying Western Power gas from its Perth Basin gas fields.

APA will transport the gas to Austral Bricks – Australia’s largest brick manufacturer. The gas will be transported via APA’s Parmelia pipeline.

Arc said it had entered into the gas sales agreement with Western Power to utilise the synergies and transportation capability of Western Power under both the DBNGP pipeline and the Parmelia pipeline, together with its retailing expertise.

“The renewal of the Austral Bricks contract is another win for Arc in consolidating its presence as a competitive and material gas supplier to the southwest market. The total value of the contract over 4 years has a sales value to Arc in excess of $20 million and provides further significant diversification of the Company’s income streams,” said Arc managing director Eric Streitberg.

We are also delighted to have formed the alliance with Western Power which will allow us to access additional customers on the DBNGP together with existing and future customers connected to the Parmelia pipeline. We hope to be able to supply Western Power with additional gas to fill any new or existing demand it may require as it develops its position in the retail market.”

APA chief executive officer-elect Mick McCormack said Austral picked Western Power and APA to supply gas after a competitive tendering process.

“This is a multi-year deal and we’re very pleased to be part of such an innovative supply agreement.”