APA and CS Energy Advance 400MW Brigalow Gas Peaker in Queensland

Australia’s APA Group (ASX:APA) has taken a large measurement successful expanding its gas-powered procreation footprint, signing a Joint Development Agreement with state-owned CS Energy to beforehand the projected 400MW Brigalow Peaking Power Plant adjacent to the existing Kogan Creek installation successful Queensland.

Under the pact, APA volition yet instrumentality an 80% ownership involvement and pb task delivery, portion CS Energy volition clasp 20% and run the plant. The project—targeted to statesman operations successful 2028—aims to proviso firming capableness during highest energy request periods, backing up the accelerated build-out of adaptable renewable vigor successful Queensland.

The statement outlines the pathway for APA to money aboriginal development, negociate long-form contracts, and modulation into bulk ownership erstwhile authorities and biology approvals are secured. GE Vernova has been selected to proviso state turbines, with last superior expenditure to beryllium determined aft elaborate engineering successful aboriginal 2026.

To trim vulnerability to wholesale energy markets, APA plans to participate a 25-year hedge offtake statement with CS Energy that volition supply inflation-linked revenues and a humble adaptable constituent for upside. APA said the project’s returns are expected to conscionable interior concern hurdles and volition beryllium funded from existing balance-sheet capableness arsenic portion of its A$2.1 cardinal integrated maturation pipeline.

The Brigalow task strengthens APA’s presumption successful gas-powered procreation astatine a clip erstwhile Australia is grappling with reliability challenges tied to the accelerated rollout of renewables and ember retirements. Queensland, successful particular, has leaned connected state procreation to steadfast its ambitious renewable expansion, with the authorities authorities pushing caller retention and flexible procreation capableness to support strategy security.

The works volition link to APA’s Roma–Brisbane Pipeline via a caller lateral transport and retention line—covered nether a antecedently finalised Project Development and Gas Transportation and Storage Agreement from July 2025. This integration enables APA to leverage its existing state transmission infrastructure and aligns with its parallel statement with CS Energy for the caller lateral pipeline.

The task is positioned arsenic a cardinal contributor to Queensland’s broader energy-transition agenda, supporting some the state’s renewable rollout and its energy-security commitments. APA expects the improvement to present worth crossed determination communities and vigor consumers, portion reinforcing capitalist assurance arsenic the institution accelerates maturation successful state transmission, storage, and distant powerfulness assets.