APA Group, a natural gas infrastructure business, has bought a major natural gas pipeline, QCLNG, in Queensland for US$5 billion ($6 billion) from BG Group.
The price of the acquisition, a 534km pipeline which connects gas fields in the Surat Basin to the QCLNG project on Curtis Island near Gladstone, is about 13 times estimated 2016 earnings.
APA managing director Mick McCormack says the deal enhances the company’s position as Australia’s largest owner of gas transmission pipelines.
He says the company is on track to achieve 2014-5 guidance for earnings of between $1.17 billion and $1.19 billion, excluding the impact of the pipeline acquisition.
Australia’s LNG exports are expected to rise 70% in 2015, thanks in part to the QCLNG project.
APA shares are in a trading halt. They last changed hands for $7.97.