APA Group (ASX:APA) said that it will expand its east coast gas grid under a five-year plan, having secured commitments for an initial investment of around AU$75 million over the next two years, according to a Monday Australian bourse filing.

It expects the expansion to deliver an increase of around 24% in north-to-south gas transport capacity and new southern markets storage.

Around AU$40 million of the commitments will be used to deliver two enhancements to the the grid that have reached the final investment decision stage.

The remaining around AU$35 million will fund early works on the third, fourth, and fifth stages of the plan, to support the development of new grid expansion and storage projects over the medium term. These works will be conditional on early customer support, board approval, and any required regulatory approvals.

It will invest around AU$25 million to deliver the Moomba-to-Sydney ethane pipeline conversion project, which is targeting completion within the year. The project is planned to provide around an additional 20 terajoules per day from Moomba to Victoria or around 25 terajoules per day to Sydney.

It will also invest around AU$15 million for the MSP off-peak capacity expansion project to increase capacity in the summer months.

The firm's shares rose 7% in early trading on Monday.