The Australian Energy Regulator today released a Position Paper on APA’s advance capex proposal to expand Victoria’s gas transmission pipeline capacity.
APA’s application aims to address risk of gas supply shortfalls forecast by the Australian Energy Market Operator for 2029.
Recognising the urgent need for investment to address this risk, the paper sets out our initial positions on APA’s capex proposal including in-principal support for:
APA’s proposed investment in two additional compressor stations for the South West Pipeline, to enable more gas supply from Western Victoria, including the Iona underground storage facility near Port Campbell.
APA to undertake early works for further pipeline expansions in the future, in anticipation of further injection capacity from Iona and potential LNG import terminals that may be established near Geelong.
Together, these projects are intended to ensure pipeline capacity will meet Victoria’s gas supply needs into the 2030s.
We have reserved our view on APA’s proposed costs, for both the immediate compression-based expansion project and for the early works associated with future projects to loop (double) the South West Pipeline and the Brooklyn to Lara Pipeline. This is because we are still undertaking our detailed assessment of APA’s proposed costs. Our final decision, to be released in July, will set out our views on APA’s costings.
On 10 April 2026, APA submitted an addendum to its initial application. It is this updated application that we are now assessing. APA’s initial application was submitted to us on 30 October 2025 under Rule 80 of the National Gas Rules.
We welcome stakeholder written submissions in response to APA’s updated application and our Position Paper by COB Friday 5 June. Written submissions may be emailed to: ResetCoord
aer [dot] gov [dot] au (ResetCoord[at]aer[dot]gov[dot]au).