Australia's biggest gas pipeline operator says it is committed to the energy transition as a group of shareholders ask how plans to supply gas from a new onshore field do not blow climate commitments.
APA Group's involvement in developing the Beetaloo Basin poses significant financial and climate risks to the company, according to a challenge filed on behalf of 128 shareholders.
The company confirmed it had received three resolutions put forward to be considered at APA’s upcoming annual meeting that were supported by investors representing about 0.0071 per cent of securities on issue.
"APA respects the rights of our investors to put forward resolutions and we welcome ongoing engagement with investors and other stakeholders that have an interest in our business," a company spokesman told AAP.
The gas utility said it had recently engaged with shareholder organisation Market Forces on its views about the development of the Beetaloo Basin and was considering the validity of the resolutions.
"APA is committed to actively participate in Australia’s energy transition and we seek to transparently disclose relevant climate-related information, including our progress against the targets and goals within our Climate Transition Plan," the spokesman said.
Market Forces said the investors it represented were concerned APA Group was relying on carbon offsets to justify building pipelines to connect onshore gas wells with interstate and export terminals.
APA agreed in 2023 to work on connecting Empire Energy's acreage in the Beetaloo Basin through to APA’s Amadeus Gas Pipeline, which supplies Darwin, Alice Springs and regional centres in the NT.
Longer-term arrangements may mean APA and Empire Energy work together to connect the Beetaloo Basin to the east coast gas market.
Conservation groups warn extraction relies on fracking, a high-risk technology that could contaminate the primary water source for the region and its agriculture.
Fracking the Beetaloo Basin and processing at Middle Arm near Darwin would produce up to 49 million tonnes of emissions per year, adding 11 per cent to Australia's annual emissions, according to analysis cited by Market Forces.
Including consumption of the gas, emissions were estimated to total 2.3 billion tonnes over 25 years, Market Forces said.
Superannuation fund UniSuper is the largest shareholder, holding more than nine per cent of the company’s shares, followed by State Street Global Advisors and American investment giant BlackRock.
"A growing number of UniSuper members and leading academics are calling on their fund to vote in favour of this resolution holding APA Group to account on its climate commitments," campaigner Rachel Deans said.
Expected to be voted on at APA's annual general meeting on October 24, it is the first climate resolution to be filed against an Australian gas utility.
But APA argues Australia's east coast and remote grid energy systems need new supplies of domestic gas to get off coal and diesel.
The pipeline company transports gas along the east coast and plans to play an even bigger role by bringing future gas from the north to users in the southern states.
