APT beat five other bidders yesterday to secure Allgas in the first sale of the Queensland Government’s energy assets, expected to generate more than $1 billion. It comes less than two months after APT announced a $452 million cash offer for Victorian gas transmission operator GasNet Australia Group.

Following APT’s announcement to the Australian Stock Exchange, McCormack told AAP that his company “wanted to be a key player” in the PNG pipeline project.

"We do definitely want to see PNG gas come into South East Australian markets and we want to play a role," the news service quoted him as saying.

The Exxon Mobil-led project recently suffered setbacks after Australian Gas Light, part-owner of the Australian leg of the pipeline, said it was scaling back its involvement.

APT managing director, Mick McCormack described the Allgas aquisition deal as “a good strategic fit,” which offered solid growth prospects as more new housing developments provided gas service.

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

APT runs 8000 kilometres of transmission pipeline in Australia, accounting for almost a quarter of the nation's grid. The GasNet acquisition would add a further 2000km of pipeline, while the purchase of Allgas will contribute 2300km in distribution mains in Brisbane, the Gold Coast, Northern NSW, Toowoomba and Oakey.

State-owned Energex acquired Allgas, a former publicly listed company, in 1998 for $250 million.