Jemena is understood to have been up against a range of competitors for the Darling Downs pipeline, including a consortium between pipeline giant APA Group and Marubeni, and ATCO Australia.
Paul Adams, Jemena managing director, described the acquisition as “a crucial next step” in the company delivering on its northern Australian growth strategy, which aims to build an interconnected supply chain of energy delivery infrastructure in northern Australia.
The network would be built both through acquisition and the development of assets from scratch such as the $800 million Northern Gas Pipeline being built between Tennant Creek in the Northern Territory and Mt Isa in Queensland, which Jemena has ambitions to extend.
Jemena, which was advised by UBS, said the deal represents a multiple of about 13 times of expected earnings before interest, tax, depreciation and amortisation in 2018. Origin put it on a higher multiple of 16.9 times 2018 EBITDA but Jemena said its figures took into account total forecast revenues and operating costs inclusive of expected savings from integrating the pipeline into its portfolio.