Empire Energy advances gas transportation services with APA 

Highlights

• Empire and APA Group (ASX: APA) have executed an initial agreement for the establishment of exclusive midstream gas infrastructure early works and proposed long-form agreements, furthering the memorandum of understanding as announced by Empire on 27 October 2021

• Subject to entering long-form agreements and approvals by each party, APA will spend up to $5 million under a proposed early works agreement on Engineering and Design Concepts for midstream gas infrastructure facilities associated with Empire’s Carpentaria Pilot Project for the potential construction of midstream infrastructure to transport up to 25 terajoules (TJ) per day to market (“Early Works Agreement”)

• Subject to entering long-form agreements and approvals by each party, APA would fund the Carpentaria Pilot Project midstream gas infrastructure facilities under a proposed partnering agreement (“Partnering Agreement”), which would materially reduce the capital requirements for Empire to commence commercial production.

• The Partnering Agreement would also comprise the transportation of large volumes of gas from the Beetaloo to Australian east coast markets subject to entering long-form agreements and approvals by each party. The leading concept considers the potential construction of a new pipeline connecting the Beetaloo to APA’s existing Carpentaria Gas Pipeline (“CGP”) between Mount Isa and Ballera (Queensland)

• The concept pipeline connecting the East Coast via the CGP has the capability of being expanded to meet growing market demand on the East Coast (in excess of 500 TJ/d), and will be the subject of further evaluation between Empire and APA in the medium term 

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