On Friday, energy company, AGL Energy Limited (AGK) said that it has signed an agreement with APA Group (APA) to sell its Berwyndale Wallumbilla Pipeline ("BWP") pipeline. The money raised through this sale would be A$82.6 million.

As part of the agreement, AGL has also entered into a 17-year Gas Transportation Agreement with APA group. This too, is in relation with BWP.

AGL has claimed that it will lead to proceeds of $2 million after the deduction of transaction costs. This, however, is exclusive of taxes.

In a statement, the company said that both the parties are interested in finishing the transaction as soon as possible.

The money, thus generated, will be used by AGL in paying back bank debt.

On the gas agreement, it said that the same will help APA get extra payment from AGL. But, for that the capacity of the pipeline needs to be increased, and AGL has the full authority in taking decision on the matter.

Besides that, the gas agreement can also be extended for another 10 years' time.