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APA confirms pipeline purchase price rumours

LNG Industry,

APA Group has issued a statement concerning comments made by BG Group CFO, Simon Lowth, about the purchase price payable under APA’s agreement to acquire the Queensland Curtis LNG (QCLNG) pipeline.

APA confirmed the comments, to the effect that the agreed terms of the acquisition of the pipeline from BG Group include provision for the initially agreed purchase price to be adjusted depending on movement in the US Producer Price Index (PPI) between the date the sale was agreed and the date of financial close.

There is an equivalent effect on tariffs, such that any change in the purchase price will be reflected in a change in the tariff payable under relevant gas transportation agreements without impacting APA’s return on investment.

Based on movements in the US PPI to date, APA calculates a purchase price between US$4.5 billion and US$5 billion, however the final price will only be confirmed at the time of financial close, which is expected before the end of 2Q15.

Adapted from press release by Katie Woodward

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