Epic Energy has entered into a binding agreement for gas transportation services on its southwest Queensland pipeline and its QSN Link pipeline, which Epic said will see contracted volumes increase and, separately, lock in revenue certainty.
According to the company, the agreement will provide total additional revenues of approximately A$44 million over a five-year period from 2010. There is no capital cost involved in providing this incremental service.
Steve Banning, Epic Energy’s managing director, said: The entering into of this binding agreement is further evidence of the strategic importance that the QSN Link will play in the delivery of southeast Queensland gas into southern markets and further builds on the strength of Epic’s existing contract profile.
This now sees Epic with only minimal amounts of spare capacity remaining under its stage one expansion of the southwest Queensland pipeline and QSN Link during 2009 and again from 2014. We are continuing to talk to various market participants regarding both stage two and stage three expansions.