APA clarifies QCLNG pipeline acquisition terms
APA Group issued a statement concerning comments made by BG chief financial officer Simon Lowth about the purchase price payable by APA under its agreement to acquire the QCLNG pipeline in Queensland from BG.
“APA confirms the comments to the effect that the agreed terms of the acquisition include provision for the initially agreed purchase price to be adjusted depending on movement in the US Producer Price Index between the date the sale was agreed and the date of financial close.
There is an equivalent effect on tariffs such that any change in the purchase price will be reflected in a change in the tariff payable under relevant gas transportation agreements without impacting APA’s return on investment,” APA said in its statement.
Based on movements in the US PPI to date, the purchase price is calculated between US$4.5 billion and US$5 billion, but the final price will only be confirmed at the time of financial close which is expected to occur before the end of the second quarter in calendar year 2015.
Image: BG Group