APA Group to add to East Coast gas carrying capacity

Core Viewpoint - APA Group is expanding its natural gas pipeline grid to address energy shortages on the east coast of Australia, with a significant increase in transport capacity planned for the East Coast Gas Grid (ECGG) [1][2]. Group 1: Expansion Plans - The stage three ECGG Expansion Plan is expected to add approximately 30% in additional transport capacity, addressing projected gas shortfalls in the southern market by CY28 [2][3]. - Over the past five years, APA will have increased the East Coast grid capacity by more than 50%, with stages one and two contributing around 25% [2]. Group 2: Market Context - Economists are forecasting potential "significant" blackouts due to gas supply not meeting demand, prompting calls for a domestic gas reservation policy [3]. - APA's CEO emphasized the need for a well-designed gas reservation policy to support upstream investment and ensure adequate gas supply for the east coast [4]. Group 3: Government Policy and Infrastructure - The CEO criticized the idea that Australia, a major LNG exporter, would need to import LNG when domestic gas is available, calling it a failure of government policy [5]. - The AEMO's 2025 Gas Statement of Opportunities indicates that expanding existing pipelines and unlocking northern supply can meet forecast gas needs into the 2030s without requiring an LNG import terminal [6].