Real asset manager Stonepeak is acquiring Australian gas distribution network Allgas from APA Group, Marubeni Corporation and other shareholders.
Australian energy firm APA said it expects to receive approximately A$64m from the sale of its 20% stake in GDI EII, the owner of Allgas. The estimate is gross of transaction costs and remains subject to adjustments, it added.
Adam Watson, APA CEO and managing director, said the divestment reflects APA’s continued focus on reviewing its portfolio to simplify the business as it continues to deliver its customer-focused growth strategy.
“This transaction will further simplify our business as we focus on reducing costs and progressing the significant growth opportunities ahead. This announcement follows the recent divestment of our networks business which now sees APA no longer owning non-core gas distribution assets in Australia,” he said.
Allgas is the provider of gas haulage infrastructure in the catchment area spanning Brisbane to the northern tip of New South Wales, and separately, Toowoomba and Oakey. Its network includes approximately 3,900km of distribution mains that supply approximately 120,000 households and businesses, nine gate stations and 123,000 metering devices.
ASX-listed APA said it will continue to provide corporate services to GDI for up to three years.
Darren Keogh, senior managing director at Stonepeak, said: “This transaction underscores Stonepeak’s long-held conviction in natural gas as an essential component of the energy mix supporting global energy transition efforts, especially in Australia where it continues to play an important role for businesses and individuals.
“Queensland, and South East Queensland in particular, is experiencing significant economic expansion underpinned by population and productivity growth that is supported by the Allgas network. We look forward to working with Allgas to help effectively capitalise on these meaningful tailwinds.”
To read the latest IPE Real Assets magazine click here.
