AGL sells 50 per cent interest in Diamantina

Diamantina Power Station
Diamantina Power Station

AGL Energy Limited (AGL) has sold its 50 per cent equity interest in the Diamantina Power Station joint venture (DPS) to APA Group, its joint venture partner in DPS. The sale price of $151 million represents a small premium to the book value of the investment and contributes to AGL’s target to sell $1 billion of non-core assets by the end of FY17.

DPS is located in Mt Isa and comprises the 242MW combined cycle gas turbine Diamantina Power Station and the 60MW open cycle gas turbine Leichhardt Power Station, serving its foundation customers Glencore and Ergon. AGL will continue to supply gas to DPS under the existing gas sales agreement which runs to 2023.

Chief financial officer Brett Redman said as a non National Electricity Market connected generator, DPS is not a strategic asset for AGL.

“Its sale represents another milestone in meeting one of our key targets to realise $1 billion in asset sales,” he said.

The sale is expected to complete on March 31, 2016.