Thursday 22 October: Economists and investors are sounding the alarm over plans by APA Group, to push ahead with one of Australia’s biggest ever gas pipelines enabling fracking in the Beetaloo Basin, Northern Territory.
Australian economists Nicki Hutley, Richard Dennis as well as major United States and Norwegian pension funds have joined more than 115 shareholders to demand APA disclose the viability of proposed pipelines amid declining gas demand as the climate goals of the Paris Agreement are implemented.
Four major international investors have challenged APA over its proposed gas pipeline by backing the Market Forces shareholder resolution, including the United States’ biggest pension, AU$919 billion Californian public sector fund, CalPERS, AU$473 billion New York City Pension Fund and AU$193 billion KLP, Norway’s biggest workplace pension fund and the country’s largest asset manager, Storebrand.
APA is planning to build the North-to East Australia Pipeline (NEAP) to enable Beetaloo Basin gas extraction mostly for export according to the fracking companies, Beetaloo Energy and Tamboran Resources.
Nicki Hutley, economist and Climate Council Councillor said:
“Through its proposed pipeline, APA appears to be playing a game of Russian Roulette with investors, tax-payers and the Paris Agreement.”
“If gas demand falls as forecast, a huge stranded asset could leave investors high and dry, and possibly tax payers if the government is called for a bailout.
“Enabling the carbon bomb that is the Beetaloo Basin puts every Australian and our economy at risk by adding to global heating.”
Richard Dennis, economist and Co-CEO, Australian Institute said:
“Most of the gas that will go through this pipeline will be sent overseas. We agree with the ACTU and dozens of other experts, politicians and community groups that gas exported from Australia should be subject to a flat 25% export tax. This would raise more than $17 billion a year which could be spent on Australian schools, hospitals, roads, aged care, disability care and so much more.”
“Have the proponents of this project modelled the impact of a 25% gas export tax, or are they banking on the Australian government continuing to get next-to-nothing for the people of Australia for their natural resources?”
Angelica Mantikas, Corporate Campaigner at Market Forces said:
“It’s extraordinary that Australia’s largest gas infrastructure company is borrowing billions on a risky new pipeline when global prices and demand for this fossil fuel are forecast to decline in coming years.”
“APA is relying on fantasy demand scenarios that ignore an impending global liquefied natural gas glut while major energy companies have ruled out the economic viability of Beetaloo fracking.”
“All investors and lenders to APA need to read the writing on the wall: there’s a severe flaw in the company’s strategy and pursuits.”
In its FY26 Annual Report, APA told investors that “0% and $0 million” of its business activities are vulnerable to climate-related transition risk, despite its predominant business being gas pipelines.
While APA has often pointed to domestic energy security to justify its proposed pipeline, CEO Adam Watson recently admitted most Beetaloo gas would be shipped overseas: “There’s no question that Beetaloo is principally going to be an LNG export play.”
Yet Market Forces analysis finds that global LNG demand is declining, particularly in Southeast Asia where Beetaloo gas is set to be exported. Gas demand in Pakistan has been revised down by 73 per cent.
The Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) have concluded that new oil and gas developments are inconsistent with the climate goals of the Paris Agreement, to avoid worsening economic and social impacts of further global warming.
Shareholders have joined with Market Forces to file resolutions at APA Group demanding the company demonstrates the economic viability of its proposed gas North-East Australia Pipeline and how it is aligned with global climate goals.
Investors are expected to grill the APA Board during the company’s annual general meeting today in Sydney, pushing for wise investment, financial discipline and an end to the company’s reliance on dubious gas demand projections.
For media inquiries and interviews contact:
Antony Balmain, +61-423-253-477 [email protected]