MEDIA RELEASE 22 October 2007

APA ANNOUNCES A SECURITY PURCHASE PLAN

Please see the attached letter from the Chairman and the Chairman Elect advising of an offer under the Security Purchase Plan (“SPP”). A SPP application form and an APA Brochure have also been attached for your information. For further information please contact: Mick McCormack, APA Group Stephen Woodhill, Gavin Anderson & Company Telephone: (02) 9693 0000 Telephone: (02) 9552 4499 or Mb: 0411 052 362 Email: mmccormack@pipelinetrust.com.au Email: swoodhill@gavinanderson.com.au

About APA Group (APA) APA Group, comprised of Australian Pipeline Trust and APT Investment Trust, is the major ASX-listed energy transmission company in Australia with interests in more than 10,000 kms of natural gas pipeline infrastructure, over 2,300 kms of gas distribution networks in south east Queensland, Coal Seam Gas processing plants, gas fired power stations, gas storage facilities and two high voltage direct current interconnector systems. APA manages and operates all it’s assets and also provides management and operations services to gas distribution and transmission company Envestra (which owns 19,100 km of natural gas distribution networks and 1,029 km of natural gas transmission pipelines). It also holds a 17.2 percent stake in Envestra and a one-third interest in the SEAGas pipeline. The Group has a varied and quality customer base including AGL Energy, Cooper Eromanga Basin Producers, Xstrata, Newmont, CS Energy, BHP Billiton, Zinifex, Incitec Pivot, Origin, RioTinto, Nickel West, Synergy and Verve Energy.

Page 1 of 10

26 October 2007 Dear Securityholder

SECURITY PURCHASE PLAN

The Board of Australian Pipeline Limited as responsible entity for APA Group (ASX:APA) is delighted to offer you an opportunity to acquire additional APA securities under a Security Purchase Plan (“SPP”). The SPP provides an opportunity for all securityholders, including the 90,000 former Alinta shareholders who became APA securityholders at the end of August to ‘top up’ their holdings. What is the SPP? The SPP enables securityholders to apply, free of brokerage, for a parcel of new APA securities valued at $1,000, $3,000 or $5,000. The price will be at a 2.5% discount to the average of the daily volume weighted average price of APA securities traded during the five trading days immediately up to and including the close of the Offer on 23 November 2007. Participation in the SPP is voluntary. The offer is non-renounceable, which means that you may accept or reject the offer but you cannot transfer the right to participate to a third party. Participation in the SPP is open to all securityholders on the APA Security Register at 5pm on 24 October 2007 (the Record Date) residing in Australia and New Zealand. The offer to participate opens on 29 October 2007 and closes on 23 November 2007 with new securities expected to be issued on 30 November 2007. New APA securities issued under the Offer will be entitled to participate in the interim distribution payable for the half year ending 31 December 2007, expected to be paid in March 2008. Securityholders should note that the market price of APA securities may rise or fall between the date of the offer and the date when the new securities are issued. At the time of issue, the Issue Price of the new securities may be higher or lower than the price of APA securities trading on the ASX. Amount to be raised and use of proceeds The amount raised under the SPP will depend on the response of securityholders. Each securityholder may apply for up to $5,000 of securities and it is unlikely that any application will be scaled back. The capital raised through the SPP will provide APA with increased financial capacity to pursue ongoing growth opportunities in its core business.

Page 2 of 10

Australian PipelineLtdACN 091 344 704

Australian PipelineTrustARSN091 678 778

APT Investment TrustARSN115 585 441

Background information on APA The SPP comes after a watershed 18 months for APA, during which both the asset base and revenue have doubled and APA has extended its ‘footprint’ across all mainland states and territories. In particular, APA:

• Has a competitive low cost business model, with no fee leakage; • Has dependable medium to long term revenue and operating cash flows, with

the potential to continue to grow both organically and through acquisitions; • Is integrating its recent acquisitions with positive commitment from new staff,

and has a total asset base around $4 billion, with assets under management of more than $8 billion; and

• Retains its intention to increase distributions by at least CPI annually. Since the initial public offering in June 2000, APA’s stock price has significantly increased, revenue is up more than 200% and distributions are up by 27%. The APA Board and Management have a clear vision to continue to grow APA Group as the nation’s leading energy transmission and distribution business with a simple philosophy of maximising value and returns for all securityholders. APA’s recent acquisitions have included:

• Allgas Energy gas distribution business in Queensland and northern New South Wales;

• GasNet Australia – owner of more than 1,900 kilometres of gas pipelines in Victoria and Western Australia;

• Directlink electricity interconnector, one of two electricity transmission links between the NSW and Queensland grids. APA also owns the Murraylink electricity interconnector, which is one of the two links between the Victorian and South Australian grids; and

• Origin Energy Networks asset management business, including a 17% holding in Envestra Limited and a one-third interest in the SeaGas Pipeline.

Industry consolidation looks set to continue and APA will participate where the investment opportunity meets our strict set of investment criteria. Transporting gas will continue to be our core business, but APA continually looks beyond pipelines and distribution networks to ensure asset and revenue diversity to appropriately manage business risk.

Page 3 of 10

Australian PipelineLtdACN 091 344 704

Australian PipelineTrustARSN091 678 778

APT Investment TrustARSN115 585 441

Further Information If you have any questions in relation to the SPP, please contact the APA Securityholder Information Line on 1800 992 312 toll free within Australia or +61 2 8280 7132 for overseas callers. We welcome your participation in the SPP and take this opportunity to thank you for your continued support. Yours sincerely

George H Bennett Leonard F Bleasel AM Chairman Chairman Elect

Page 4 of 10

SRN/HIN:

SecuRItyPuRcHaSePlaN ��SPP��� aPPlIcatI�N ��R����SPP���aPPlIcatI�N��R��This is an offer to eligible holders of APA Group (APA) stapled se�urities (��e�urit�holders�) to subs�ribe for additional stapled se�urities in APA (�stapled se�urities�) understapled se�urities (��e�urit�holders�) to subs�ribe for additional stapled se�urities in APA (�stapled se�urities�) under(��e�urit�holders�) to subs�ribe for additional stapled se�urities in APA (�stapled se�urities�) under�e�urit�holders�) to subs�ribe for additional stapled se�urities in APA (�stapled se�urities�) underto subs�ribe for additional stapled se�urities in APA (�stapled se�urities�) under the Terms and Conditions of the �PP (�Offer�).B� �ompleting this Appli�ation Form and forwarding it with �our pa�ment, �ou (a) a�knowledge that �ou have read and understood the Terms and Conditions of the �PP and agree to be bound b� the �onstitutions and b�-laws of APA (�Constitution�), (b) appl� to subs�ribe for stapled se�urities in a��ordan�e with the Terms and Conditions of the SPP, (c) certify that the aggregate application amount of stapled securities which you have applied for under this SPP (including through joint beneficial holdings), even if you re�eived more than one offer under this �PP, together with amounts subs�ribed for in an� similar plan offer b� APA in the last 12 months, does not ex�eed A$5,000, (d) acknowledge that none of APA, its advisers and agents has (i) provided you with any financial product or investment advice and (ii) is not under any obligation to provide such advice, and (e) acknowledge that the information on the SPP has been prepared without taking into account your investment objectives, financial circumstances or parti�ular needs. A referen�e to ‘A$’ in this Appli�ation Form, the Terms and Conditions and in the Chairman’s letter with whi�h this Appli�ation Form was en�losed, is a referen�e to the lawful �urren�� of Australia. Please note: • The Terms and Conditions of the �PP, in�luding on the reverse of this Form, should be read �arefull�.• Pa�ments ma� onl� be made b� BPAY®, cheque or money order in Australian dollars and drawn on an Australian branch of a financial institution. Cash payments will not be

a��epted.• Pa�ment b� BPAY® or re�eipt b� APA of this Appli�ation Form dul� �ompleted, together with the full subs�ription amount, will �onstitute a��eptan�e in a��ordan�e with the

Terms and Conditions of the �PP and the Constitution of APA b� the �e�urit�holder named on this Appli�ation Form. APA ma� re�e�t an a��eptan�e of this Offer, in itsAppli�ation Form. APA ma� re�e�t an a��eptan�e of this Offer, in its. APA ma� re�e�t an a��eptan�e of this Offer, in its absolute dis�retion, if pa�ment is not re�eived in a��ordan�e with the Terms and Conditions, is in�omplete or if the exa�t amount applied for is not tendered.

Accepting this Offer using Bpay®• To pa� via BPAY® refer to the Biller Code and Reference Number below, and contact your participating financial institution.• You are not required to return this Appli�ation Form.Appli�ation Form..• B� pa�ing b� BPAY®, �ou will be deemed to have �ompleted an Appli�ation Form for the number of stapled se�urities the sub�e�t of �our pa�ment amount.Accepting this Offer by cheque or money order• Cheque or mone� orders are to be made pa�able to: ‘APA Group – �PP A��ount’ and �rossed Not Negotiable.• The �ompleted Appli�ation Form should be torn off below and forwarded with �our pa�ment to rea�h APA’s registr� b� 5:00pm (Sydney Time) on 23 November 2007.

Please allow sufficient time for collection and delivery by postal services as the postal acceptance rule does not apply.• If lo�ated within Australia please forward �our Appli�ation Form, along with pa�ment, in the repl� paid envelope provided. New Zealand �e�urit�holders must forward it to

the postal address set out below. �e�urit�holders outside of Australia and New Zealand are not eligible to parti�ipate.• Your form �annot be faxed to APA’s registr� as pa�ment must be atta�hed to �our Appli�ation Form.Mailing Address: APA Group C/- Link Market �ervi�es Limited, Repl� Paid 3560, ��dne�, N�W 2001, AustraliaHand Delivery Address: APA Group C/- Link Market �ervi�es Limited, Level 12, 680 George �treet, ��dne� N�W 2000 (Please do not use this address for express post mailing)

Make your cheque or money order payable to “APA Group – SPP Account”

RecordDate: 24�ctober2007�ffer�pens: 29�ctober2007allotmentDate: 30November2007

Please detach this tear-off slip and return with your cheque or money order

I/WewishtopurchaseaPastapledsecuritieswithanaggregatesubscriptionpriceof (tick one box only):

Payment Details (if paying by cheque or money order):Drawer Cheque Number B�B Number A��ount Number Amount of �heque

a$

Biller Code: 333401

Ref:

Contact Details: Telephone Number – Business Hours Conta�t Name (PRINT)

A$1,000 OR A$3,000 OR A$5,000

telephone&InternetBanking–Bpay®

Contact your bank, credit union or building society to make this payment from your cheque or savings account. More info: www.bpay.com.au®Registered to Bpay Pt� Ltd ABN 69 079 137 518

(must correspond with amount ticked above)

�ffercloses5:00pm�Sydneytime��: 23November2007

All Registry communications to:Link Market Services Limited

Locked Bag A14 Sydney South NSW 1235 Australia

Toll free: 1800 992 312From outside Australia: +61 2 8280 7132

Facsimile: (02) 9287 0303ASX Code: APA

Email: apagroup@linkmarketservices.com.auWebsite: www.linkmarketservices.com.au

Australian Pipeline Ltd Australian Pipeline Trust APT Investment TrustACN 091 344 704 ARSN 091 678 778 ARSN 115 585 441

This Offer is non-renounceable – No signature is required If you require further information on how to complete this Application Form please contact Link Market Services Limited on

1800 992 312 toll free within Australia, or +61 2 8280 7132 for overseas callers.

Page 5 of 10

teR��SaNDc�NDItI�NS��SPP

How much can you invest?You ma� appl� to invest in new stapled se�urities having a pur�hase value of A$1,000, A$3,000 or A$5,000.If �ou re�eive more than one offer from APA, for example be�ause of separate holdings under separate se�urit� a��ounts or be�ause �ou are a �oint holder of stapled se�urities, the maximum �ou ma� appl� to invest under this Offer as a sole and �oint holder of new stapled se�urities is A$5,000. APA reserves the right to re�e�t an� appli�ation where this has not been �omplied with.If subs�riptions re�eived from �e�urit�holders ex�eed the 30% issue threshold under A�X Listing Rule 7.2 Ex�eption 15, APA will s�ale ba�k appli�ations on a pro rata basis. If this o��urs, �ou ma� be allo�ated stapled se�urities to a value whi�h is less than what �ou applied for and APA will refund an� ex�ess appli�ation mone� (without interest). How will we determine the Issue Price?The Issue Pri�e for ea�h stapled se�urit� the sub�e�t of this Offer will be the pri�e equal to a 2.5% dis�ount to the average of the dail� volume weighted average pri�e of APA stapled se�urities traded during the 5 trading da�s immediatel� up to and in�luding the �lose of the Offer on 23 November 2007 (�the Closing Date�).The market pri�e of APA stapled se�urities ma� �hange between the Closing Date and the date that the new APA stapled se�urities are allotted to �ou. APA does not makenew APA stapled se�urities are allotted to �ou. APA does not makeAPA stapled se�urities are allotted to �ou. APA does not make any assurance that stapled securities in APA will trade at or above the Issue Price following the allotment date. Securityholders should seek their own financial advice in relation to this Offer and parti�ipation in the �PP.No fra�tion of new stapled se�urities will be issued. Fra�tions of new stapled se�urities �al�ulated at the date of issue will be rounded up to the nearest whole new stapled se�urit�.What will the cost base of a new APA Stapled Security be for Capital Gains Tax Purposes?An APA stapled se�urit� �omprises a unit in the Australian Pipeline Trust (APT) and a unit in APT Investment Trust (APTIT). While these �omprise a single �omponent se�urit� and �an onl� be dealt with together, the� are separate assets for �apital gains tax purposes. In determining �our �ost base for an APT unit and an APTIT unit the Board of APA will allo�ate 25% of the Issue Pri�e for ea�h new APA stapled se�urit� to an APT unit and 75% of the Issue Pri�e for ea�h new APA stapled se�urit� to an APTIT unit. �e�urit�holders should seek their own taxation advi�e in relation to this Offer and their parti�ipation in the �PP.Who is eligible to apply under this Offer?Parti�ipation in the �PP is open to �e�urit�holders registered on APA’s se�urit� register as at 5:00pm on 24 O�tober 2007 (�the Re�ord Date�) and have an address in Australia or New Zealand. The Offer to ea�h eligible �e�urit�holder is made on the same terms and �onditions. The Offer is non-renoun�eable. If a trustee or nominee is expressl� noted on the register of members as holding stapled securities on account of another person (a ‘beneficiary’), the beneficiary is taken to be the registered holder of the stapled securities and any application or certification by the trustee or nominee is taken to be an application and certification by the beneficiary for the purposes of (amongst others) paragraph �(v) of A�IC Class Order 02/832. If stapled se�urities are held on �our behalf b� a trustee or nominee, but the trustee or nominee is not expressl� noted on the register of members as holding stapled se�urities on a��ount of another person, an appli�ation b� the trustee or nominee is taken to be an appli�ation b� the registered �e�urit�holder.Can I transfer my Offer to a third party?The Offer is non-renoun�eable, so �ou �annot transfer �our right to parti�ipate in the �PP to a third part�.Do you have to pay any costs?No brokerage, �ommission or other transa�tion �osts appl� to the issue of new stapled se�urities under the �PP. The onl� �ost to �ou is the Issue Pri�e of the new stapled se�urities.What will be the Issue Date?The new stapled se�urities will be issued on 30 November 2007 or as soon as possible after that date. APA’s registr�, Link Market �ervi�es Limited, will send �ou a holding statement as soon as pra�ti�able after the Issue Date.What rights will the new stapled securities carry?New stapled se�urities will rank equall� in all respe�ts with existing stapled se�urities and will be entitled to the interim distribution for the 6 months ending 31 De�ember 2007.How do you apply for new stapled securities under the SPP?To appl� for new stapled se�urities under this Offer, �ou must:

– Carefull� read these Terms and Conditions– On the Appli�ation Form on the ba�k of this page: Ti�k the box beside the amount �ou wish to pur�hase; either A$1,000, A$3,000 or A$5,000. Complete the �heque details se�tion. Or, if pa�ing via BPAY®, see details on reverse side. Write �our da�time telephone number – �ust in �ase we have an� questions. You DON’T need to sign the Appli�ation Form.

– BPAY® Option – Conta�t �our parti�ipating institution and make the pa�ment via BPAY®. Do not return this Appli�ation Form if �ou ele�t the BPAY® Option.– Cheque and Money Order Option – Write out �our �heque or get �our mone� order made pa�able to �APA Group – �PP A��ount�. �end the Appli�ation Form and

�our �heque using the repl�-paid envelope provided: Alternativel�, please mail or deliver to the address below.

By Reply Paid Mail Or hand delivered toAPA Group APA GroupC/- Link Market �ervi�es Limited C/- Link Market �ervi�es LimitedRepl� Paid 3560 Level 12, 680 George �treet��dne� N�W 2001 ��dne� N�W 2000

Make sure �ou send �our Appli�ation Form and �heque allowing enough time for mail deliver�, so Link Market �ervi�es Limited re�eive them no later than 5:00pm (��dne� time) on 23 November 2007. APA reserves the right not to pro�ess an� Appli�ation Forms and �heques re�eived after the Closing Date.Can APA change the Offer?APA retains the right to var� the date the Offer �loses, the date new stapled se�urities are allotted and the date holding statements are dispat�hed to �e�urit�holders. An� variation of date will be notified to the Australian Securities Exchange. APA may change or terminate the SPP at any time prior to the Issue Date and will advise the Australian �e�urities Ex�hange in the event that this o��urs. An� omission to give noti�e of �hanges to, or termination of, the �PP, or the non-re�eipt of an� su�h noti�e, will not invalidate the �hange or termination. If the �PP is withdrawn, all appli�ation monies will be refunded. No interest will be paid on an� refunded appli�ation monies.In addition to an� rights of APA to re�e�t appli�ations as set out in these Terms and Conditions, APA also reserves the right to allo�ate fewer, or no, APA stapled se�urities than an eligible �e�urit�holder applies for under the �PP if APA believes that the allotment of those stapled se�urities would �ontravene an� of the A�X Listing Rules or the Corporations A�t 2001 (Cth). In an� su�h �ase, ex�ess appli�ation monies will be returned to the relevant appli�ant(s). No interest will be paid on appli�ation monies so returned.How is a dispute resolved?APA may settle any dispute in connection with the SPP in any manner it thinks fit, whether generally or in relation to any participant. APA’s decision shall be final and binding. APA reserves the right to waive stri�t �omplian�e with an� provisions of these Terms and Conditions.Privacy Clause: Link Market �ervi�es Limited advises that Chapter 2C of the Corporations A�t 2001 requires information about �ou as a se�urit�holder (in�luding �our name, address and details of the stapled se�urities �ou hold) to be in�luded in the publi� register of the entit� in whi�h �ou hold stapled se�urities. Information is �olle�ted to administer �our se�urit�holding and if some or all of the information is not �olle�ted then it might not be possible to administer �our se�urit�holding. Your personal information ma� be dis�losed to the entit� in whi�h �ou hold stapled se�urities. You �an obtain a��ess to �our personal information b� �onta�ting us at the address or telephone number shown on this Appli�ation Form. Our priva�� poli�� is available on our website (www.linkmarketservi�es.�om.au). Page 6 of 10

Overview of APAAPA Group (“APA”), comprising Australian Pipeline Trust and APT Investment Trust, is the leading ASX-listed energy transmission business in Australia with interests in more than 10,000 km of natural gas pipeline infrastructure, over 2,300 km of gas distribution networks in south east Queensland, coal seam gas processing plants, gas-fired power stations, gas storage facilities and two high voltage direct current electricity interconnector systems. APA’s interests also extend to the provision of operations and maintenance services to ASX-listed gas distribution and transmission company Envestra (which owns 19,100 km of natural gas distribution networks and 1,029 km of natural gas transmission pipelines), a 17.2% stake in Envestra and a one-third interest in the SEAGas pipeline.

APA operates an internalised management structure with direct operational control over its assets and no fee leakage. APA employs over 1,000 people, who variously manage all commercial, regulatory, government and stakeholder-related issues, as well as the day-to-day operations and maintenance for both APA and third party assets.

APA generates strong cash flows that enable it to fund operating expenditures and capital to support the maintenance of existing infrastructure and the growth of that infrastructure.

October 2007

Page 1

AUSTRALIAN PIPELINE LTD ACN 091 344 704 AUSTRALIAN PIPELINE TRUST ARSN 091 678 778 APT INVESTMENT TRUST ARSN 115 585 441

APA Group

Key Financial Measures

$ million FY2007 FY2006 Change %

Revenue* 532.7 379.0 40.5Earnings before interest, tax, depreciation and amortisation*

296.8 200.4 48.1

Operating profit after tax and minorities*

64.5 60.7 6.4

Underlying operating cash flow (OCF)*

157.0 112.2 39.9

Underlying OCF per security (cents)*

41.1c 38.7c 6.8

Distributions per security (cents) 28.0c 24.0c 16.7Total Assets ($ billion) 4.23 2.06 105.0* Before significant items

Summary of Revenue and Assets by Geography

The chart below sets out the total revenue and asset value by geographical location for FY2007. Note that from FY2007, APA will also have assets and revenue in South Australia.

Revenue Asset Value

NSW16%

NT3%

QLD29%

WA28%

VIC24%

Distribution Growth

As demonstrated below, since FY2005 APA has exceeded its strategic goal of increasing distributions by at least CPI annually.

0

4

8

12

16

20

24

28

32

cents

FY04 FY05 FY06 FY07

0%

Income distribution

6.4

15.1

22.524.0 24.5

3.5

16.7%

6.7%

4.7%

Tax deferred distribution

APA Highlights Listed on the Australian Stock Exchange in June 2000.

Acquired remaining minority interests in Roma to Brisbane Pipeline and Carpentaria Gas Pipeline in Queensland in 2001 and 2005 respectively.

In August 2004, increased its ownership in Goldfields Gas Transmission Pipeline to 88.2% and acquired the Parmelia Gas Pipeline and Mondarra Gas Storage in Western Australia.

From 2006, acquired or constructed a number of complementary businesses including:

Construction of Kogan North central gas processing facility;

Acquisition of Murraylink electricity interconnector for $153 million;

Commissioning of Daandine gas-fired power station;

Acquisition of the Allgas gas distribution business for $521 million;

Acquisition of Directlink electricity interconnector for $170 million, and

Commissioning of Tipton West gas processing facility.

In June 2006 entered into a 25 year gas transportation agreement with Power and Water Corporation (Northern Territory) and committed to develop the Bonaparte Gas Pipeline.

In December 2006, completed a full cash offer of $3.10 per stapled security for GasNet Australia Group.

In July 2007, completed acquisition of Origin Energy Network assets for $556 million.

In August 2007, Alinta distributed its APA securityholding to its shareholders as a part of the acquisition of Alinta Ltd by Babcock & Brown/Singapore Power International Consortium.

In October 2007, paid $210 million to terminate or transfer to APA, the Alinta operating and maintenance services for many of APA’s key gas transmission pipelines.

■

■

■

■

–

–

–

–

–

–

■

■

■

■

■

NSW21%

QLD31%

WA19%

VIC29%

NSW21%

QLD31%

WA19%

VIC29%

Page 2

Principal activities of APAAPA’s portfolio comprises a mix of established pipeline assets, assets under development and complementary energy infrastructure assets. It derives its reliable and predictable revenue stream through a mix of regulated returns and negotiated revenue contracts. APA has assets in each mainland state and territory.

Gas Transmission

APA is the leading owner, manager and operator of natural gas pipelines in Australia. APA owns, or has an interest in more than 10,000 km of gas transmission pipelines in all mainland states and territories of Australia. APA transports approximately 50% of the natural gas consumed in Australia.

Gas DisTribuTion

In 2006, APA purchased Allgas, one of the two major gas distribution businesses in Queensland. Allgas services some of the high population growth centres in south east Queensland and northern NSW. The Allgas distribution network supplies 65,000 customers and includes over 2,300 km of distribution mains located in Brisbane, the Gold Coast, northern NSW, Toowoomba and Oakey. A significant expansion program has been approved by the regulator to satisfy rapid growth in gas demand in the region.

ElEcTriciTy Transmission

APA owns and operates both Murraylink and Directlink, which are underground direct current electricity cable interconnectors. Murraylink connects the South Australian and Victorian electricity grids and Directlink the Queensland and New South Wales electricity grids.

Gas ProcEssinG

APA owns and operates two gas processing facilities, Kogan North and Tipton West. Both are located west of Brisbane. Kogan North processes coal seam gas from the Kogan North gas field for transportation through the Roma to Brisbane Pipeline to Swanbank E Power Station. Tipton West processes coal seam gas for supply to the Braemar Power Station.

Gas sToraGE

The Mondarra gas storage facility is located near Dongara, Western Australia, and adjacent to the two pipelines servicing Perth, including APA’s Parmelia Gas Pipeline. It is currently the only commercial underground gas storage facility in Western Australia. APA is expanding the facility in response to the need for peak gas demand to service customers in Perth.

APA owns a liquid natural gas storage facility in Victoria which provides peak shaving and security of supply services for the Victorian gas transmission system.

ElEcTriciTy GEnEraTion

APA has constructed one gas-fired power station (“Daandine”) and is constructing a second (“X41”). Daandine is located adjacent to the Kogan North gas processing facility and will produce 27.4 MW of electricity in base load operation.

X41 is a 30 MW power station which will be fuelled by gas transported in APA’s Carpentaria Gas Pipeline and will be connected into the grid servicing the mineral rich province in the Mt Isa area.

APA believes that gas-fired power generation will increasingly be viewed as a viable and greener alternative to coal-fired power generation, particularly as both the major Federal political parties committed to the introduction of a national carbon trading scheme in the coming years.

GrEEnfiElD DEvEloPmEnTs

In June 2006, APA announced that it would develop the Bonaparte Gas Pipeline in the Northern Territory, which will transport gas from Wadeye on the Bonaparte coast to Darwin to meet the Northern Territory’s Power and Water Corporation power generation requirements.

APA is also pursuing a gas transmission grid on the eastern coast that will offer a seamless tariff for gas delivered into Queensland, New South Wales, the Australian Capital Territory and Victoria.

Page 3

APA’s Assets

1. VICTORIAN TRANSMISSION SYSTEM, NSW/VIC

2. GOLDFIELDS GAS TRANSMISSION PIPELINE, WA

3. PARMELIA GAS PIPELINE, WA

4. MIDWEST PIPELINE, WA

5. TELFER GAS PIPELINE, WA

6. MOOMBA TO SYDNEY PIPELINE SYSTEM, SA/NSW

7. CENTRAL WEST PIPELINE, NSW

8. ROMA TO BRISBANE PIPELINE, QLD

9. CARPENTARIA GAS PIPELINE, QLD

10. ALLGAS DISTRIBUTION NETWORKS, QLD/NSW

11. AMADEUS GAS PIPELINE, NT

12. PROPOSED BONAPARTE GAS PIPELINE, NT

13. KOGAN NORTh GAS PROCESSING FACILITY, QLD

14. TIPTON WEST GAS PROCESSING FACILITY, QLD

15. DAANDINE POWER STATION, QLD

16. X41 POWER STATION, QLD

17. LNG FACILITY, VIC

18. MONDARRA GAS STORAGE FACILITY, WA

19. MURRAYLINK INTERCONNECT, SA/VIC

20. DIRECTLINK INTERCONNECT, NSW/QLD

21. MURRIN MURRIN LATERAL, WA

22. KALGOORLIE TO KAMBALDA PIPELINE, WA

23. GLADSTONE TO MARYBOROUGh GAS PIPELINE, QLD

24. ENVESTRA DISTRIBUTION NETWORKS, VIC/SA/QLD

25. CAMS WATER AND WASTE WATER TREATMENT SERVICES, VIC

26. SEAGAS PIPELINE, VIC/SA

27. RIVERLAND AND MILDURA PIPELINES, SA/VIC

28. SESA PIPELINE, VIC/SA

29. ALICE SPRINGS GAS PIPELINE, NT

For further details, please refer to the APA Group website www.pipelinetrust.com.au.

WESTERN AUSTRALIA

SOUTH AUSTRALIA

VICTORIA

NORTHERNTERRITORY

QUEENSLAND

NEW SOUTH WALES

TASMANIA

8

23

2415

20

6

7

19

25

24

27

26

1

24

28

17

9

11

2

4

3

18

5

12

16

29

21

22

1413

10

Page 4