Wedoany.com Report-Dec.7, APA Group and CS Energy have signed a joint development agreement to build and own the 400 MW Brigalow Peaking Power Project, a gas-fired power station located near Chinchilla in Queensland's Western Downs region. The facility will be situated adjacent to CS Energy's existing Kogan Creek Power Station.

APA will spearhead the project's delivery under a construction management agreement following entry into full form documentation.

Scheduled to commence operations in 2028, Brigalow will provide flexible peaking capacity to support grid reliability during high-demand periods and complement the growing share of variable renewable generation in Queensland and the National Electricity Market.

Under the agreement, APA Group will lead project delivery and secure an 80 percent ownership interest once all conditions are satisfied, while CS Energy will retain a 20 percent stake and handle ongoing operation and maintenance. The project remains subject to regulatory approvals, final engineering design, and execution of binding documentation expected around mid-2026.

GE Vernova has been chosen to supply the gas turbines. Final capital costs will be confirmed following detailed engineering work planned for the first half of 2026.

To manage electricity price exposure, APA and CS Energy have structured a proposed 25-year hedge offtake arrangement that delivers primarily inflation-linked revenue to APA, supplemented by a modest variable component.

The power station will connect to APA's Roma-Brisbane Pipeline via a dedicated lateral pipeline currently under development, with related gas transportation and storage agreements already finalised in July 2025.

APA CEO and Managing Director Adam Watson said: "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."

The investment aligns with APA's strategy to expand its gas-powered generation portfolio while supporting Australia’s energy transition objectives. Funding will come from existing balance sheet resources and is expected to meet the company's return requirements.

Once operational, Brigalow Peaking Power Project will enhance system flexibility, help manage peak demand, and contribute to stable electricity supply as renewable energy penetration continues to increase across Queensland and eastern Australia.