Gas supply and infrastructure – New South Wales APA Group presentation – Energy Forum Armidale 17th Aug 2012 About APA Group APA is Australia’s largest natural gas infrastructure business Energy Infrastructure: – Own and operate gas pipelines and interconnected gas storage facilities across Australia – Own and operate gas distribution networks in east Australia – Own and operate a wind farm Asset Management: Australian gas transmission pipelines owners by length (km) Prime Infrastructure DUET Singapore Power 1,105 (1) 1,480 (1) 1,425 Epic Energy (2) 2,340 APA SEA ENV Gas APA 2,000 4,000 (1) Proportional ownership (2) APA has a 19.4% interest in HDF, owner of Epic Energy 6,000 8,000 10,000 EII 12,000 12,800 10,890 (1) 14,000 Pipeline length (km) – Provision of asset management, operating and maintenance services – Services provided to the majority of APA’s energy investments APA (at Date listed 13 June 2000 Energy Investments: ASX symbol APA Market capitalisation $2.9 billion Rank S&P/ASX 100 65th Securities on issue 634,116,029 Fiscal year end 30 June – Minority interests in energy infrastructure investments, including Envestra, SEA Gas Pipeline, Energy Infrastructure Investments and Hastings Diversified Utilities Fund 22 November 2011) APA Group Presentation 2 APA well positioned in a growing industry Unrivalled gas asset footprint – Largest transporter of natural gas across Australia Stable and secure cash flow – Regulated and contracted revenue Attractive growth opportunities – Enhancing capacity in APA’s portfolio to meet increasing gas demand Integrated portfolio of assets – Providing revenue and operating synergies Internally managed and operated business – Highly skilled and experienced workforce APA’s national portfolio connects major gas sources to major markets APA Group Presentation 3 Recent investment in NSW infrastructure Moomba Sydney Pipeline Completed 3 out of 5 year mainline expansion program Moomba Tamworth Bulla Park Dubbo Young compressor stations Moomba Sydney Pipeline Reconfiguration and relocation of compressors at Young and Marsden Lithgow Griffith Wagga Culcairn APA pipelines and networks APA investments Other pipelines SYDNEY Young CANBERRA Moomba Sydney Pipeline Completed Young Wagga looping project – 61km Increased capacity for transport and storage services Gas supply at Uranquinty Power Station APA Group Presentation 4 NSW gas demand Gas fired power generation will be the primary driver for gas infrastructure growth in NSW Projects that are well advanced include: – AGL Dalton Power Station – TRUenergy Marulan Power Station In the future gas fired power stations will be the complementary power source to wind energy to provide reliable power generation Retail and industrial demand for gas will be flat going forward APA assets APA investments Other pipelines APA Group Presentation 5 Multiple gas sources to meet NSW demand Indiginous (NSW) gas sources Queensland/Moomba gas sources – Sydney Gas already supplying small quantities into Sydney via AGL Camden Project – EPIC Energy are currently increasing capacity on the SWQP – pipeline looping/duplication – Santos takeover of Eastern Star Gas may have Gunnedah Basin gas being sent to Queensland LNG Delivery into Sydney market via existing APA pipelines or new pipelines – Further expansion of MSP planned to meet demand – Increased flow would occur if excess coal seam gas is available – AGL is developing CSG fields in Hunter Valley and Gloucester Victorian gas sources – Gippsland and Otway Basins have sufficient conventional gas to supply NSW – Increasing capacity on APA’s NSW and Victorian pipelines to move gas between states – Currently two pipelines delivering gas from Victoria into NSW APA Group Presentation 6 For further information contact Ivan Byak Head of Commercial Energy, APA Group Tel: 02 9693 0046 E-mail: ivan.byak@apa.com.au or visit APA’s website www.apa.com.au Delivering Australia’s energy