The Australian Energy Regulator (AER) approved APA Group’s A$213 million expansion of the South West Pipeline in Victoria. This project aims to mitigate gas shortfalls during peak winter demand starting in 2029. The Australian Energy Market Operator (AEMO) previously forecast these supply gaps.
APA will construct two new compressor stations to increase gas flow into the Victorian Transmission System. These stations will draw natural gas from the Otway Basin and the Iona Underground Gas Storage facility. The company selected a compression-based solution to reduce costs compared to pipeline looping alternatives.
Project work begins immediately with compressor unit procurement scheduled for completion by July 2026. This investment will integrate into APA’s regulated asset base and organic growth pipeline. The expansion serves as a critical infrastructure upgrade to ensure Victoria’s energy security.