These assets include the 180km underground high voltage direct current cable interconnector between Berri in South Australia and Red Cliffs (near Mildura) in Victoria.

Murraylink is the world’s longest underground high voltage power cable with a rated capacity of 220MW into either region. In addition to the underground cable, the assets include converter stations at Red Cliffs and at Monash in Berri that connect Murraylink with the respective AC transmission networks.

The transaction involved APT acquiring 100% of the shares in both asset owners, Murraylink HQI Australia and SNC-Lavalin Investment Australia.

APT said while the acquisition would start generating cash flow immediately, Murraylink’s impact on its full-year profit was expected to be small.

Chief executive Mick McCormack said Murraylink marked the company’s first significant acquisition of a non-gas transmission asset.

“It is a low-risk operation and is an ideal asset to leverage off our skills and asset management experience,” McCormack said.

“In particular, the asset management, operating, and regulatory skills involved in managing the Murray link assets are similar to those needed to run a gas pipeline business.”

Murraylink is covered by an approved revenue cap until 2013, which provides a fixed annual revenue stream of about $13 million.