Queensland’s first new natural gas power station in more than a decade will be fuelled by locally produced gas under a new agreement announced today.
From 2027, Senex will supply up to 58.4 petajoules of natural gas from its Atlas development in Queensland’s Surat Basin to CS Energy’s proposed Brigalow Peaking Power Plant to be built near Chinchilla in Queensland’s Western Downs.
Once operational, the 400-megawatt gas peaking plant will have the ability to start up and deliver full output within five minutes, delivering reliable energy supply to more than 150,000 Queensland homes during peak electricity demand periods.
As the share of renewables grows in Queensland’s electricity grid, the essential role of natural gas for reliable electricity supply has never been more important.
When the wind doesn’t blow and the sun doesn’t shine, reliable and flexible natural gas powered generation is able to firm the grid and deliver reliable energy supply, particularly in peak periods.
In a media release announcing the agreement today, Treasurer and Energy Minister David Janetzki said gas powered generation formed a key part of the Government’s Energy Roadmap to deliver affordable, reliable and sustainable power.
“This is part of our plan to improve the energy assets we have while we build what we need for the future,” Minister Janetzki said.
“The Roadmap includes extended coal generation, more low-cost energy production in wind and solar and more dispatchable supply including gas turbines, pumped hydro and batteries for firming and storage.
“The need for new gas capacity is universal across all market outlooks to de-risk the energy system as it transitions over time."
CS Energy CEO Brian Gillespie said the Brigalow Peaking Power Plant would be located next to the company’s Kogan Creek Power Station and close to the Chinchilla Battery.
“With its ability to perform multiple start and stop cycles per day, the Brigalow Peaking Power Plant will be a reliable source of fast power when needed and produce significantly less emissions than electricity produced from coal,” Mr Gillespie said.
Senex Energy CEO Darren Stevenson said the organisation was proud to be investing more than $1 billion in the Western Downs to deliver reliable energy supply for households and businesses.
“With energy shortfalls forecast for the east coast in coming years, this agreement will add critical new supply to the domestic market when it’s needed most,” Mr Stevenson said.