APA Group (ASX: APA) has confirmed that Stage 3 of its East Coast Gas Grid (ECGG) Expansion Plan is progressing, with the Commonwealth environmental assessment process now underway for the Queensland and New South Wales sections of the Bulloo Interlink Pipeline (BIL).
The company has referred both sections of the pipeline to the Commonwealth Department of Climate Change, Energy, the Environment and Water under the Environment Protection and Biodiversity Conservation Act 1999.
APA said the referral marks a significant milestone for the project and supports its responsible delivery.
The company is now awaiting a decision on both referrals while continuing environmental assessments alongside key stakeholders.
Design and corridor assessment work is also continuing as APA moves toward an expected final investment decision later this year.
The BIL is a proposed underground high-pressure natural gas transmission pipeline that would connect APA’s South West Queensland Pipeline to the Moomba to Sydney Pipeline in New South Wales.
It would create a new, direct gas transportation route from the Bulloo Shire in south west Queensland into NSW, cutting roughly 240 kilometres from the north to south corridor and expanding capacity across the broader east coast gas grid.
As a key component of Stage 3 of APA’s ECGG Expansion Plan, the BIL is expected to add approximately 30 per cent additional north-to-south gas transport capacity, addressing projected gas shortfalls in southern markets forecast to begin in 2028.
APA Chief Executive Officer and Managing Director Adam Watson said the milestone builds on years of work expanding the network.
“This is an important milestone in the continued expansion of our East Coast Gas Grid,” said Watson.
He noted that incremental investment in existing infrastructure has proven effective, pointing to the company’s track record over the past five years.
“Incremental investment in existing pipeline infrastructure is a reliable and cost-efficient way to deliver the gas needed along the east coast, with APA having already delivered a 25 per cent increase in north-to-south transport capacity over the last five years.”
Watson also referenced guidance from the Australian Energy Market Operator regarding the broader supply outlook.
“AEMO has been clear that unlocking northern gas supply and expanding existing pipelines will push out projected shortfalls in southern markets into the 2030s,” said Watson.
He added that the project would help connect gas reserves in Queensland and the Northern Territory to homes and businesses along the east coast, and said APA looks forward to continued engagement with government, landholders, Traditional Owners and local communities.
The BIL forms part of APA’s Stage 3 ECGG Expansion Plan, announced in February 2026, which also included a final investment decision on Stage 3A, a $260 million investment in three new compressors set for completion in 2028.
That work remains on track, with procurement and contract finalisation progressing and site works already underway.
The February announcement additionally allocated $220 million toward early works and long lead item procurement for the BIL itself.
Construction of the pipeline is proposed to begin in 2027, pending approvals and a final investment decision, with completion targeted for 2028 and a maximum transport capacity of 800 terajoules per day.
That final decision will depend on several factors, including policy settings, progress on the federal government’s Gas Market Review and formal Board approval.