APA Group has signed an initial agreement with Empire Energy Group to progress works associated with the development of Empire Energy's Carpentaria pilot project. The project seeks to connect Empire Energy's acreage in the Beetaloo Basin to the existing McArthur River Mine Pipeline. This connection would establish a link from the Beetaloo Basin through to APA's Amadeus Gas Pipeline, which supplies gas to Darwin, Alice Springs and regional centres in the Northern Territory.

Under the initial agreement, APA will commence pre-engineering studies to potentially develop gathering pipelines, gas processing infrastructure and transmission pipeline infrastructure. It is planned to agree to a longer-form early works agreement in the coming months. This would then see APA spending up to $5 million on engineering work and potentially early land access approvals in fiscal 2024.

The proposed project is subject to further negotiations between APA and Empire Energy, and approvals by each party. As part of the proposed longer-form arrangements, APA and Empire Energy would also work together to potentially connect the Beetaloo Basin to The east coast gas market.