The 30-year gas transportation and storage agreement and a development agreement begins with the Kurri Kurri lateral, which APA will build, own and operate, and will connect to the Sydney to Newcastle pipeline. Storage capacity will be 70 terajoules as part of the Hunter power project, expected for completion by the end of next year. 

 

The pipeliner still needs certain third party approvals, including a pipeline licence. There are also what the company calls "various development matters being agreed with Snowy Hydro". 

 

APA's total construction costs for the project are currently estimated to be around $264 million, although this figure remains subject to detailed engineering design, due at the end of this year. The company is also working on securing electric drive compressors to cut down on gas use for power, and emissions. 

 

At peak construction it expects some 400 new jobs. 

 

"The current energy crisis has underscored the critical role that gas will continue to play in our energy mix, delivering affordable firming for renewable generation, energy security, and high heat capability for the industrial sector," managing director and CEO Rob Wheals said.

 

"As coal is withdrawn from the National Electricity Market, natural gas is the workhorse of the energy grid. Its flexibility and reliability ensure it is able to be rapidly deployed and sustained for extended periods, delivering energy security when it's needed most." 

 

Just under two weeks ago APA announced it had secured A$1 billion in loans from a syndicate of banks and financiers in a clear vote of confidence in the businesses outlook.

 

In February the planned $600 million, 600 megawatt plant got a federal environmental tick. 

 

The project received approval from New South Wales authorities in December.