APA Group has signed a joint development agreement with CS Energy for the delivery of the proposed Brigalow Peaking Power Plant in Queensland.
The 400MW gas power station will be located next to CS Energy’s existing Kogan Creek Power Station in Queensland. Once operational in 2028, the project will provide firming capacity for peak electricity demand periods, complementing variable renewable energy.
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APA will lead delivery of the project under a construction management agreement and will acquire an 80% ownership interest in the project. CS Energy will operate and maintain the plant and retain a 20% ownership interest.
Final capital expenditure will be subject to detailed engineering design, which is expected to be completed in the first half of calendar year 2026. GE Vernova has been appointed to deliver the gas turbines for the project.
APA will limit its exposure to wholesale electricity prices associated with the operation of the plant through a proposed 25-year hedge offtake agreement with CS Energy, which sees APA generate returns under an inflation-linked revenue arrangement.
The agreement also incorporates a small portion of variable revenue, providing the potential for higher returns.
APA CEO and managing director Adam Watson said, “This project builds on APA’s existing capabilities and assets in Queensland, driving momentum in our GPG growth strategy and complementing our separate agreement with CS Energy to deliver the project’s lateral pipeline.
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“We know significant investment in GPG capacity is needed to firm the integration of renewables in Australia’s energy system. CS Energy and the Queensland Government continue to show leadership in the energy transition, with the delivery of new renewable power generation and supporting GPG infrastructure.
“The project will create value for communities across Queensland, energy consumers and APA securityholders. We welcome the opportunity to partner with CS Energy and the Queensland Government as we continue to invest to support energy security and transition along Australia’s east coast.”
