The APA Group (ASX: APA) share price has shaken off this morning's dip amid news the company has made a leap towards growing its East Coast Gas Grid.
The gas pipeline operator has embarked on the second stage of its network expansion which aims to add around 13% of capacity for Australia's southern states by winter 2024.
At the time of writing, the APA share price is $11.59, the same as its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is in the green this morning. It's currently up 0.43%.
Additionally, APA's home sector – the S&P/ASX 200 Utilities Index (ASX: XUJ) – is recording a 0.39% gain.
Let's take a closer look at today's news from the energy infrastructure company.
APA embarks on expansion's second stage
The APA share price recovered from an early plunge on Wednesday as the company works to address potential shortages of gas in south-eastern states.
The Australian Energy Market Operator recently flagged shortfalls of gas might be felt in Victoria, the ACT, New South Wales, and Tasmania in extreme weather from as early as 2023.
APA's network expansion aims to address such concerns, adding 25% of capacity at a total investment of around $270 million.
The first stage – set to add 12% of capacity – is already under construction and should be finished before winter 2023.
The second stage will see APA working on the South West Queensland Pipeline and Moomba Sydney Pipeline. It's set to be completed by winter 2024.
The two pipelines deliver gas from Queensland and the NT to southern markets.
APA CEO and managing director Rob Wheals commented on today's news, saying:
APA is playing a critical role in delivering additional energy security for southern gas markets ahead of forecast supply risks … Pipeline gas is also lower emissions than gas proposed to be supplied by east coast LNG import terminals, and more cost effective given the strong global demand for LNG.
APA share price snapshot
The APA share price has outperformed the ASX 200 over 2022 so far.
Right now, the stock is 15% higher than it was at the start of this year. Over the period, the index has tumbled 5.7%.
APA's shares are also trading for 22% more than they were this time last year. Meanwhile, the ASX 200 is flat.
