CS Energy secures APA Group backing for Western Downs gas plant
Queensland will break a decade-long drought with a major gas power station in the Western Downs that promises to transform the state's energy security by 2028.
A landmark deal has been struck to build Queensland’s first gas-fired power station in more than a decade on the Western Downs.
APA Group has entered into a joint development agreement with state-owned energy company CS Energy to help develop the proposed Brigalow Peaking Power Plant.
The 400 megawatt power plant, first unveiled by CS Energy, would be located next to their Kogan Creek Power Station near Chinchilla.
As part of the agreement APA Group would provide project funding and supply capability to ensure the proposed plant would be operational by 2028.
As part of their contribution in a separate agreement, they would deliver around a 23km natural gas pipeline connecting the power plant to their Roma to Brisbane pipeline.
Transaction documents are to be finalised between CS Energy and APA Group that would see CS Energy operate and maintain the power plant including physical dispatch of its output into the market.
Works are to be commenced in December.
Once operational, the power plant will be able to power 150,000 homes during peak demand.
Treasurer and Energy Minister David Janetzki said the development would help provide stability for the state’s power needs.
“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,” Mr 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.”
Callide MP Bryson Head said the deal would benefit Western Downs families.
“This brings more energy industry jobs to the Western Downs, and secures the future for the Callide electorate as the electricity powerhouse of the state,” Mr Head said.
“Importantly, this is taking local gas and turning it into electricity to deliver affordable and reliable power for households across Queensland.”
CS Energy chief executive Brian Gillespie said the deal would boost CS Energy’s bottom line.
“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.”
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