Shareholders challenged APA over its proposed Beetaloo gas pipeline, uncertain LNG demand and climate risks, as the company’s CEO pointed to an ANZ banker in the audience as a sign of lender support.
APA Group’s chairman has defended the company’s proposed multibillion-dollar Beetaloo gas pipeline by asking shareholders to choose between gas and starvation, as investors challenged the gas infrastructure giant over uncertain demand, financial risks and its plans to enable one of Australia’s largest proposed fracking developments.
At APA’s annual general meeting (AGM) on 22 October, chairman Michael Fraser was responding to a young person questioning the climate consequences of the company’s proposed North to East Australia Pipeline (NEAP), which could operate into the 2070s.
Fraser argued gas was essential for electricity generation and fertiliser production, before asking what was better: gas or starvation.
“Yes, there are time risks, obviously, but what’s better, gas or starvation?”
The response came despite APA’s own CEO Adam Watson previously acknowledging that Beetaloo is principally an LNG export play, with most gas destined for overseas markets rather than Australian households or fertiliser producers.
The proposed 1,561 kilometre NEAP could cost more than $7 billion, according to Market Forces’ estimates, and would help unlock large-scale fracking in the Northern Territory’s Beetaloo Basin, potentially enabling more than one billion tonnes of greenhouse gas emissions.
The exchange followed a Market Forces-coordinated shareholder resolution, backed by more than 115 shareholders and major international investors including CalPERS, New York City pension funds, KLP and Storebrand, demanding greater transparency over APA’s proposed gas infrastructure investments.
ANZ singled out by APA CEO amid questions over Beetaloo pipeline financing
APA’s relationship with ANZ came under scrutiny at the AGM, with CEO Adam Watson personally acknowledging an ANZ banker sitting in the audience as shareholders questioned the bank’s potential role in financing NEAP.
A concerned shareholder raised recent protests targeting ANZ over the possibility of its financing APA’s proposed North-East Australia pipeline, asking whether the pressure could affect the bank’s willingness to provide funding.
Watson dismissed concerns about APA’s ability to attract finance, highlighting a recent $1.5 billion debt raising and strong demand from institutional investors.
“We’ve got incredible support from our banks,” Watson said.
He then drew attention to an ANZ banker sitting in front of him, referring to the bank specifically raised in the shareholder’s question.
“It’s always good to have you here, Craig,” Watson said, before describing the banker’s attendance as a strong signal of the support APA receives from its lenders.
The exchange was a public acknowledgement of APA’s relationship with ANZ at a time when the bank is facing pressure to rule out financing the company’s Beetaloo expansion.
ANZ has an established infrastructure banking business, including senior utilities and infrastructure banker Craig Shortus, previously identified by ANZ as its Head of Utilities & Infrastructure.
The shareholder pressed Watson further, asking whether APA had spoken with ANZ and remained confident the bank would be willing to finance NEAP in the future.
Watson did not confirm that ANZ had committed to financing the project. Instead, he emphasised that APA would spread its financing across multiple lenders and funding sources.
He maintained that support from APA’s existing lenders remained strong and that the company did not foresee access to finance as a risk to its future success.
The comments reinforce the significance of APA’s existing banking relationships, even as the financing arrangements for NEAP remain undecided.
According to Market Forces’ analysis, ANZ has not adopted an explicit exclusion equivalent to restrictions at CommBank, NAB and Westpac that would prevent direct financing of APA’s proposed dedicated Beetaloo pipelines.
While ANZ has not announced a commitment to finance NEAP, its publicly stated policies leave open the possibility of direct financing.
With APA’s CEO pointing to ANZ’s presence at the AGM as evidence of strong lender support, the bank faces a clear question about whether it will continue leaving the door open to financing infrastructure that would enable new Beetaloo fracking.
Take action: Tell ANZ to rule out APA’s Beetaloo pipelines.
Economist and Climate Council Councillor Nicki Hutley has also warned of the financial consequences if gas demand fails to meet expectations.
“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.”
APA questioned over LNG demand and multibillion-dollar investment risks
At the meeting, Market Forces Corporate Campaigner Angelica Mantikas spoke on behalf of the shareholders who filed the resolution, and challenged APA’s assumptions about future gas demand, amid an enormous wave of new global liquefied natural gas (LNG) export capacity.
According to the International Energy Agency, more than 330 billion cubic metres of additional annual LNG export capacity is expected to come online between 2025 and 2030 from projects already approved for investment.
Mantikas asked whether APA expected Beetaloo gas to be sufficiently competitive to displace existing LNG suppliers, or was instead relying on additional global gas demand emerging to absorb the new supply.
Fraser did not identify which scenario APA expected. Instead, he described the steps the company would need to undertake before making a final investment decision, including proving the economics of upstream gas production and securing sufficient customer demand.
The chairman indicated a decision could still be two to three years away.
In a separate exchange, Market Forces Investor Campaigns Manager Brett Morgan challenged APA over its Northern Goldfields Interconnect pipeline, which Fraser acknowledged had less than 50% of its capacity contracted.
When asked whether APA would commit to fully contracting NEAP before making a final investment decision, Fraser declined.
The exchange raised further concerns about the financial assumptions underpinning a pipeline that could remain operational into the 2070s, particularly given Market Forces’ findings that Beetaloo gas is significantly more expensive than alternative Australian gas resources.
After the AGM, Angelica Mantikas, Corporate Campaigner at Market Forces, said:
“APA is proposing to spend billions on a pipeline, yet shareholders are still being left guessing about the market that gas is supposed to serve. That’s a pretty extraordinary position for a company asking investors and banks to back such an enormous project.”
“APA wants investors to believe it has a sound business case for Beetaloo, but its chairman couldn’t give a straight answer about where demand for the gas would come from.”
Economists have also questioned the assumptions underpinning APA’s proposed pipeline, including whether its financial modelling adequately accounts for the possibility of changes to Australia’s gas export tax arrangements.
Richard Denniss, economist and Co-CEO of the Australia Institute, questioned whether APA had assessed the impact of a proposed 25% gas export tax on Beetaloo’s economics.
“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?” Denniss said ahead of the AGM.
APA’s claim of zero climate transition vulnerability challenged
Shareholders also questioned APA’s FY2026 Annual Report, in which the company assessed that zero per cent, and $0 million, of its business activities were vulnerable to climate-related transition risk under its own methodology.
Cari Lin, Shareholder Action Campaigner at Market Forces raised concerns about how APA’s board had satisfied its duties under the Corporations Act, citing a March 2026 legal opinion examining the implications of the International Court of Justice’s landmark climate advisory opinion for Australian company directors.
Fraser defended APA’s assessment, explaining that the company had developed its own definition of vulnerability, including thresholds for potential asset impairment and reductions in value.
While APA maintains its climate assessments are appropriate, the exchange highlighted the importance of understanding the assumptions behind its zero-vulnerability figure, particularly as the company considers investing billions in new fossil fuel infrastructure.
APA’s representation of Beetaloo gas costs was also questioned following a formal complaint lodged with ASIC by Market Forces and Equity Generation Lawyers in March 2026.
The complaint requested an investigation into concerns about APA’s representations of Beetaloo’s relative costs, resource size and financial viability.
Asked for APA’s current estimate of Beetaloo gas production costs, Fraser declined to provide a figure, instead suggesting results from producing wells over the next 12 to 18 months would provide more clarity.
Fraser said APA had responded to correspondence from ASIC.
Investors demand APA demonstrate the financial case for Beetaloo
For the third consecutive year, Market Forces and shareholders challenged APA’s gas expansion plans through resolutions at the company’s AGM.
The 2026 proposal sought greater disclosure of how APA assesses major new gas infrastructure investments against declining gas demand, lower prices and Paris-aligned climate scenarios.
APA has maintained it will only proceed with NEAP if the economics justify the investment. However, the AGM left important questions about Beetaloo’s competitiveness, long-term demand, contracting and climate-related financial risks unresolved.
The company is pursuing major new gas infrastructure investments while reporting zero vulnerability to climate transition risk under its chosen methodology, and continues to point to energy security despite acknowledging Beetaloo’s principal role as an LNG export development.
Ahead of the meeting, economist and Climate Council Councillor Nicki Hutley warned:
“Through its proposed pipeline, APA appears to be playing a game of Russian Roulette with investors, tax-payers and the Paris Agreement.”
Market Forces is calling on ANZ to rule out financing infrastructure dedicated to unlocking new Beetaloo fracking.