Natural gas infrastructure company APA Group (ASX:APA) will pay $63 million to acquire a gas pipeline in the Northern Territory.
Announcing the deal, APA said it had been leasing the Amadeus Gas Pipeline from a consortium of financial institutions, and has arranged to buy out the infrastructure at the end of the lease.
The pipeline has been operated and managed by APA's 96%-owned subsidiary, NT Gas, since it was commissioned in 1986.
APA simultaneously revealed it had entered into a long term gas transportation agreement with Northern Territory government owned electricity provider Power and Water Corporation that will utilize the pipeline.
The company also owns interests in two more NT pipelines – Bonaparte and Wickham Post, and said it expects to achieve operational synergies between the three assets with the acquisition.
APA added that the three assets combined should give it the opportunity to pursue more growth opportunities in NT.
APA shares fell 0.69% in Thursday's trading to $4.320.
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