Epic Energy, a wholly owned subsidiary of the Hastings Diversified Utilities Fund, has announced that commercial gas flows have commenced on the QSN Link pipeline in Australia.

According to the company, the QSN Link project includes both the new pipeline, connecting Epic’s South West Queensland Pipeline (SWQP) to its Moomba-to-Adelaide Pipeline (MAPS) and APA’s Moomba-to-Sydney Pipeline, together with new compression facilities on the SWQP.

The QSN Link project was financed in February 2008 and debt funded. The project is underpinned by a long-term take-or-pay contract with AGL Energy, and Epic has sold all spare capacity until 2014 with only minimal capacity available from 2014 to 2022, said the company.

Separately, AGL has committed to the second stage expansion of the QSN Link, with gas deliveries to commence by January 2013. This expansion will involve the installation of a two compressor stations on the SWQP. Epic is also continuing to evaluate the third stage expansion of the SWQP, either through full compression or by looping of the entire pipeline.

Steve Banning, Epic’s managing director, said: We now have a long term supply link into our MAPS pipeline to underpin current demand and support growth, particularly in gas fired generation.