Empire Energy, APA Group sign infrastructure MoU for Beetaloo

Empire Energy Ltd., Sydney, and the APA Group, Sydney, have signed a memorandum of understanding (MoU) to evaluate opportunities for development of Beetaloo basin midstream infrastructure including gas and liquids gathering, processing, and pipelines to market.

The MoU is for the companies to seek opportunities to enter development and commercial agreements for APA to build, own, and operate the infrastructure to move gas and liquids from Empire’s Beetaloo discoveries in the Northern Territory.

The companies also will promote a common user model for development of the infrastructure to drive economies of scale benefits and lower cost per unit charges, Empire said.

APA proposes a staged incremental development approach, leveraging its network to reduce the required initial capital investment and align the pace of upstream development.

The MoU does not restrict Empire from negotiating a deal for use of the existing McArthur River gas pipeline, it said.

APA’s northern strategy envisions an expansion of the Amadeus gas pipeline through additional gas compression to augment the Northern Territory government’s plans to develop gas-supported industry and LNG export expansion in Darwin.

APA’s eastern strategy includes development of a greenfield pipeline between the Amadeus gas line and the Carpentaria gas pipeline at Mt. Isa in Queensland to bring gas to southern markets. The proposed new Beetaloo pipeline will become part of the existing APA gas distribution network and be the most capital-efficient model for connecting the Beetaloo discoveries to market.