Origin Energy Limited has secured long term gas pipeline capacity to link its Eastern Australian portfolio following completion of a gas transportation agreement with Epic Energy.

Origin's Executive General Manager Energy Markets, Mr Frank Calabria said, 'The expansion of the South West Queensland Pipeline and QSN Link will provide Origin with increased flexibility in moving gas resources from Queensland to our customers and power stations in southern Australia.'

A conditional gas transportation agreement had been signed between Origin and Epic in June 2009. Epic announced earlier today that it would be proceeding with the expansion of capacity on the 937 kilometre South West Queensland Pipeline and QSN Link from Wallumbilla to Moomba.

The agreement covers the transportation of up to 1,200 PJ of gas over 22 years from January 2012 with extension options over some capacity for up to a further 10 years.

It also includes additional long term capacity on the Moomba to Adelaide pipeline and options to further expand the capacity of the South West Queensland Pipeline in the future.

Origin did not exercise its option to contribute to the funding required by Epic to undertake the project.

Tags: EPiC Energy Resources, Origin Energy