APA reaches final investment decision on $700M pipeline

• APA Group reached a final investment decision to commit $700 million for the construction and commissioning of the Bulloo Interlink Pipeline.
• The decision is backed by a five-year take-or-pay gas transportation and storage agreement with Origin Energy starting in 2028.
• The expansion forms part of a broader $3.5 billion organic growth pipeline designed to address projected east coast gas transport constraints.

APA Group (ASX:APA) reached a final investment decision to commit $700 million towards constructing and commissioning the Bulloo Interlink Pipeline to help address predicted east coast gas supply shortfalls.

This $700 million investment follows a previous $220 million commitment made in February 2026 to progress early works such as engineering, approvals, and line pipe procurement.

"The BIL is designed to ensure pipeline capacity is not a constraint to meet projected gas demand for Australia’s southern states later this decade and into the early 2030s," said APA Group Managing Director and CEO Adam Watson.

Under the five-year take-or-pay agreement with Origin Energy (ASX:ORG), services on the East Coast Gas Grid will start on Jan. 1, 2028, following the conclusion of existing arrangements.

The company stated that the project forms part of its $3.5 billion organic growth pipeline and is expected to deliver returns above internal hurdle rates.

Following the announcement, the APA Group share price was up at $11.57.

The pipeline represents Stage 3B of the East Coast Gas Grid Expansion Plan, which aims to increase north-to-south transport capacity by more than 50% compared to 2023 levels.

In late September, the energy infrastructure business also expanded its broader portfolio by acquiring an 80% stake in the $1.27 billion Brigalow Peaking Power Plant in Queensland.