The Sydney-based company today said it had executed a sale and purchase agreement with the Queensland Government-owned corporation to acquire all of the shares in Allgas.

APT said the purchase is part of its strategy to acquire assets “complementary” to its core gas transmission business and enhance its growth profile.

“It is a good strategic fit and transition into our business is expected to be smooth,” managing director Mick McCormack said.

“Allgas is a rapidly growing business and we believe this acquisition will add significant value to our well-balanced, diversified portfolio of transmission businesses.

“Importantly, it is in line with our investment criteria and our strategy to pursue value-accretive acquisitions in complementary asset classes.”

APT said Allgas also has a strong regulator approved growth profile and is forecast to have a regulated asset base of $317 million, as at December 31, 2006.

Allgas is one of two gas distribution businesses in southeast Queensland, servicing high-population growth centres, APT said.

Its network includes more than 2300km of distribution mains located in Brisbane, the Gold Coast, northern New South Wales, Toowoomba and Oakey. The network’s total gas usage is around 10 petajoules per annum.

Completion of the acquisition is subject to final restructuring of Allgas assets and subsidiaries being affected.