Empire Energy, APA sign transportation services MoU
Sydney-listed explorer Empire Energy has executed a transportation services memorandum of understanding (MoU) with Australian energy infrastructure company APA, it said on October 27.
The companies will explore opportunities to enter development and commercial agreements for APA to build, own and operate gathering, production, processing, and transportation infrastructure for the movement of gas and liquids from Empire's Northern Territory assets. APA owns the Amadeus gas pipeline in the Northern Territory.
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APA and Empire will also promote a 'common user' model for the development of the Beetaloo sub-basin infrastructure “to drive economies of scale benefits and lower cost per unit charges”. The MoU does not restrict Empire from engaging, negotiating and entering into agreements for use of the McArthur River gas pipeline.
APA is looking to expand the Amadeus gas pipeline through additional gas compression augmenting the Northern Territory government's plans for the development of gas-supported manufacturing industry and LNG export expansion at Darwin.
It is also looking to develop a greenfield pipeline between the Amadeus gas pipeline and Carpentaria gas pipeline at Mount Isa to bring gas to southern markets to help address predicted future shortfalls in both domestic market and LNG export capacity at Gladstone, Empire said. The proposed new Beetaloo pipeline will become part of the existing APA gas distribution network.