en.Wedoany.com Reported - AGL and its contractor Clough have held a groundbreaking ceremony for the Kwinana Gas Power Plant Phase 2 (K2) project in Western Australia, aimed at enhancing the power security and reliability of the South West Interconnected System (SWIS).

The K2 project is a 220-megawatt (MW) open-cycle dual-fuel gas turbine power station, to be built adjacent to AGL's existing Kwinana Swift Power Station (K1). The project will add up to four open-cycle gas turbines (OCGTs), which, combined with the existing K1 assets, will provide approximately 340 MW of fast-start dispatchable power.

The total project cost is estimated at A$490 million, including four new gas turbines that AGL agreed to purchase from Siemens Energy AB last year. AGL announced in October 2025 that it had acquired these units from Siemens Energy AB for A$185 million, and the Australian Energy Market Operator (AEMO) has allocated 176 MW of peak certified reserve capacity to them, effective from October 1, 2027.

AGL Managing Director and CEO Damien Nicks stated that the K2 project is not only a significant milestone for AGL but also crucial for the resilience, reliability, and security of the SWIS, as well as Western Australia's renewable energy transition. The project strengthens AGL's portfolio in Western Australia and, building on its 105 MW, 15-year power purchase agreement (PPA) with the Waddi Wind Farm near Dandaragan, provides opportunities to further expand its Perth energy business and diversify beyond the East Coast energy market.

Western Australia's Minister for Energy and Decarbonisation, Amber-Jade Sanderson, noted that as renewable energy increases in the grid, natural gas provides system security; with the phase-out of state-owned coal-fired power by 2030, natural gas is a driver of the energy transition. The project will ensure power remains reliable during the grid transition.

The K2 project is expected to commence operations by the end of 2027.

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