APT chief executive Mick McCormack said the new contract would underpin the expansion of the Mondarra facility via the drilling of a “state-of-the-art” purpose-built gas storage well into the existing reservoir. Capital expenditure is expected to be between $A10 and $A15 million.

“The multi-million storage and transportation contract and Mondarra expansion will position Australian Pipeline Trust to develop additional peak gas supply services, which are expected to be much sought after in the rapidly developing deregulated WA energy market,” McCormack said.

The expansion of the gas storage facilities is intended to help manage peak supply constraints in the Perth region.

“In addition to the gas storage revenue, this development will directly lead to additional gas transportation revenue for the Parmelia Gas Pipeline,” McCormack said.

This investment forms another step in the development by APT of the Mondarra Gas Hub, which straddles the only two gas pipelines servicing the south-west of Western Australia.

The Mondarra Gas Hub effectively offers interconnected pipeline gas transportation services, load management, storage, compression and processing, all controlled remotely from APT’s dedicated 24-hour Perth Control Centre.