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1Unregulated growth capital expenditure 2East Coast Gas3• East Coast Grid Expansion – Stage 1 of the expansion works, increasing Wallumbilla to Wilton capacity by 12%, was 4completed and commissioned in Q4FY23. This will help mitigate the forecast 2023 southern State winter supply risks 5identified in the 2022 AEMO GSOO. Confirmation of Stage 2, which will add a further 13% of capacity, was announced in May 62022. Stage 2 is well advanced with major procurement complete and construction commenced on both the MSP and SWQP 7sites in late FY23. The project is scheduled for commissioning ahead of the forecast potential winter 2024 shortfalls.8• Kurri Kurri Lateral Pipeline – On 20 June 2022, APA executed a Gas Transportation and Storage Agreement and a 9Development Agreement with Snowy Hydro Limited to develop a 20 kilometre Kurri Kurri Lateral gas pipeline connection. 10APA will build, own and operate the Kurri Kurri Lateral, connecting the Sydney to Newcastle Pipeline to the Hunter Power 11Project at Kurri Kurri in New South Wales. The project includes a 70 TJ gas storage facility to service the Hunter Power 12Project. During the year, the New South Wales Government approved the Environmental Impact Statement (EIS) for the 13project. APA submitted an application for a pipeline licence in February which is expected to be issued in early FY24. 14APA has secured an easement with all landowners along the pipeline alignment. Major procurement is complete and pipe 15has arrived at Newcastle Port. Electric drive compressors will be used to minimise the emissions intensity of operations. 16Construction contracts are expected to be awarded in early FY24 with project completion in 1HFY25 and ahead of the Hunter 17Power station project completion. 18West Coast Gas19Northern Goldfields Interconnect (NGI)  – The NGI pipeline connects the Perth Basin to APA’s Goldfields Gas Pipeline and APA’s 20Eastern Goldfields network. Construction of the pipeline and compressor station were both completed during the year and 21commissioned in Q4FY23.22Power Generation23Gruyere Power Station Expansion and Hybrid Energy Microgrid  – APA’s first hybrid energy microgrid investment will expand 24the existing reciprocating gas-fired power station, with a 13MWp solar farm backed up by a 4.4MW/4.4MWh battery energy 25storage system (BESS). The microgrid uses a hybrid control system to monitor and react to cloud movements, battery control 26and the existing reciprocating engine control systems to optimise efficiency and maximise the use of renewable generation. 27During the year, the expansion to the existing reciprocating gas-fired power station was completed and commissioned, and 28the solar farm and BESS constructed. Commissioning and performance testing were completed on 31 July 2022. Total installed 29capacity of the microgrid is 64MW (60MW of power generation and 4.4MW of battery storage).30Dugald River Solar Farm – Construction of the $150 million 88MW Dugald River Solar Farm (previously called Mica Creek Solar 31Farm) was approved in March 2022. The project is underpinned by two offtake agreements – a 15-year solar offtake agreement 32to supply renewable energy to the MMG Dugald River mine and a variation to an existing agreement with existing APA 33customer, Mount Isa Mines Limited, to supply renewable energy for 15 years. As part of the project, APA entered into a 32-year 34lease agreement with the Queensland Government to locate the Dugald River Solar Farm near the Diamantina Power Station 35Complex. The solar farm was completed during the year and successfully connected and commissioned in Q4FY23. 36Prospective projects37• In FY23, APA progressed preliminary work on several other large projects including:38• Beetaloo Basin, Northern Territory – In FY22, APA entered a non-binding MOU with Empire Energy to progress feasibility 39studies on APA providing processing and transportation infrastructure for Empire Energy’s Beetaloo and McArthur Basins 40Project. Through FY23, APA continued to engage with Empire Energy to develop infrastructure requirements to support 41Empire’s early project concepts in the Beetaloo Basin. In FY23, APA entered an initial agreement with Tamboran Resources 42to progress the connection of Tamboran’s proposed Beetaloo Basin production projects to APA’s gas transmission assets. 43Under the agreement, APA commenced early land access and approvals, and pre-engineering studies to develop a gas 44pipeline from Tamboran’s proposed Shenandoah South project to the Amadeus Gas Pipeline. APA also commenced early 45work to develop a large-volume, open access pipeline from the Beetaloo Basin to APA’s South West Queensland Pipeline, 46facilitating the connection of Beetaloo Basin gas to APA’s East Coast Gas Grid.47• Gabanintha Vanadium Project, Western Australia – During the year, APA progressed the non-binding MOU with a customer 48for gas transportation services along a proposed 150 kilometre long new pipeline to supply gas to the Gabanintha Vanadium 49Project. In June 2022, APA entered into an Early Works Agreement to progress early work activities for the proposed 50pipeline, including confirming the pipeline route, preparing appropriate licences, initial engineering design and identifying 51long lead procurement items.52Performance  53(continued)545655APA GROUP   ANNUAL REPORT 2023