CS Energy has entered into a Joint Development Agreement with APA Group to deliver the proposed Brigalow Peaking Power Plant in Queensland’s Western Downs.
The agreement is the first stage in a public-private sector partnership under the Queensland Government’s Energy Roadmap, designed to meet Queensland’s energy requirements and deliver clear commercial value.
The Brigalow Peaking Power Plant will be located next to CS Energy’s Kogan Creek Power Station and provide fast start capability in high demand periods, reinforcing power system reliability and complementing renewable energy.
Once operational in 2028, the 400 MW gas peaking plant will be capable of reaching full output within five minutes, delivering reliable energy to more than 150,000 Queensland homes during peak electricity demand periods.
Under the binding Joint Development Agreement, APA will contribute project funding and supply capability as APA and CS Energy work together to further develop the project.
APA and CS Energy will now work together to finalise transaction documents that would see CS Energy operate and maintain the power plant, including physical dispatch of its output into the market, and retain a 20 per cent ownership interest. APA’s 80 per cent share of the plant will be contracted to CS Energy under a 25-year hedge offtake agreement.
Treasurer and Minister for Energy David Janetzki said the agreement was an example of how the Crisafulli Government was helping optimise investment and boost private sector investment in new generation.
“Our Energy Roadmap was designed to not only provide more affordable and reliable energy, it was about making Queensland an attractive destination for private sector capital,” Treasurer Janetzki said.
“Gas provides a safety net for times of high demand, power outages or extended periods of low renewable energy production.
“Energy Roadmap modelling indicates Queensland may have up to 4.1GW of gas-fired generation capacity by 2030, increasing to between 6.1GW and 8.3GW by 2035. This forecast reflects our commitment to ensuring reliability is met through additional dispatchable capacity.”
CS Energy CEO Brian Gillespie said the proposed transaction would strengthen CS Energy’s balance sheet as it focuses on improving the performance of its existing assets and building a sustainable longer-term portfolio.
“The Brigalow Peaking Power Plant is the most advanced gas power project in the state, with orders for long-lead time equipment secured and agreements for gas supply and connecting pipelines already in place,” Mr Gillespie said.
“In the coming weeks, we will commence early site works, including intersection upgrades and internal access road construction.
“The project’s location next to Kogan Creek Power Station provides strategic access to established electricity grid infrastructure and a highly skilled workforce.
“CS Energy is absolutely delighted to work with APA, a hugely experienced gas infrastructure developer and operator to deliver the Brigalow Peaking Power Project.”
Image: APA Group Executive Energy Solutions Darren Rogers, APA CEO and MD Adam Watson, CS Energy CEO Brian Gillespie and CS Energy Chief Commercial Officer Sophie Sangster.
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-fired power.
CS Energy has also undertaken advanced studies into gas generation at Callide in Central Queensland, positioning the business to support Queensland Investment Corporation’s market sounding for an additional 400 MW of gas-fired capacity in the region.
Brigalow Peaking Power Plant background
- Compact power island footprint of approximately 350 metres by 150 metres.
- Open cycle design with 12 x GE Vernova aeroderivative turbines (LM2500XPRESS).
- Under a separate agreement, APA will deliver a ~23km natural gas pipeline connecting the power plant to APA’s Roma to Brisbane Pipeline.
- Senex Energy will supply up to 58.4 petajoules of natural gas from its Atlas development in Queensland’s Surat Basin.
- Development approval and an Environmental Authority have been obtained.
- Early works to commence in December. Forecast to be operational in 2028.
More information
Treasurer and Minister for Energy media statement
APA Group ASX release