APA Group and CS Energy have now formally signed a Joint Development Agreement. As Joint Venture partners, they’ll share development of, and ownership of, a new 400MW gas-fired peaking power station, the Brigalow Peaking power project. This major energy project will be located on the behalf of Chinchilla in the Western Downs region of Queensland. It would be a huge step toward modernizing the state’s energy infrastructure.
The Brigalow Peaking power project strengthens energy security. It does so by providing firming capacity exactly when the demand for electricity is at a peak. This will help to bring a higher level of variable renewable energy sources in Australia’s energy system. With an expected in-service date of 2028, the project stands to deliver benefits to communities along the route, energy consumers across the region, and APA securityholders.
Project Details and Development Timeline
According to the deal, APA Group is responsible for funding the project, until it receives an 80% ownership interest. APA will manage the project’s delivery through a construction management agreement, ensuring that all aspects of development are handled efficiently. The final capital expenditure for the project won’t be known until after the detailed engineering design. We’re looking to finish that design in the first half of 2026.
Expect further developments on the project, including the signing of long-form agreements, by mid-2026. A memorandum of understanding on project development, gas transportation, and storage for the new pipeline finalized by July of 2025. GE Vernova has been chosen as the gas turbine supplier for this ambitious endeavor.
Strategic Partnerships and Financial Management
APA Group’s CEO and Managing Director, Adam Watson, noted the importance of this partnership as a “a game-changer for the battery industry.” He asserted that investing a lot in GPG capacity is the key to effectively transitioning renewables into Australia’s energy infrastructure. He underscored the importance of a big investment in GPG capacity. This investment is welcome and necessary to bolster the adoption of renewables and integration with Australia’s transitioning energy system. Together, CS Energy and the Queensland government are demonstrating a clear path forward for an equitable energy transition. They are building out massive new renewable power generation and infrastructure for gas-powered generation.
APA Group is looking to mitigate its exposure to volatile wholesale electricity prices. They intend to formalize a long-form, proposed 25-year hedge offtake agreement with CS Energy. This smart change is meant to firm up revenues and guarantee delivery of energy when demand is highest.
Benefits to Communities and Energy Security
The Brigalow Peaking power project is set to bring significant and lasting benefits to communities all around Queensland. Listen to Watson, ‘creating value for communities across Queensland, energy consumers and APA securityholders.’ We are thrilled to be working with CS Energy and the Queensland government on this pioneering project. Together, we will invest in improving energy security and supporting the transition across Australia’s eastern seaboard.
As Australia progresses towards a more sustainable energy future, initiatives like the Brigalow Peaking power project are critical for enhancing grid stability and supporting renewable energy integration. Through this collaboration, APA Group and CS Energy plan to better serve the energy needs of customers in the future. Their partnership fuels economic development in the communities they serve.
