APA Group has entered into a joint development agreement with CS Energy to advance the proposed 400-megawatt Brigalow Peaking Power Plant in Queensland. This gas-fired project is scheduled to come online in 2028, designed to support peak demand and firm renewable energy sources. APA Group is an Australian energy infrastructure business, owning and operating gas pipelines and electricity transmission assets. CS Energy is a Queensland government-owned corporation focused on energy generation and retail.
Under the agreement, APA is set to acquire an 80 per cent stake in the project upon execution of full-form documentation and satisfaction of conditions. CS Energy will operate the power plant and retain the remaining 20 per cent ownership. The project is still subject to securing necessary government and external approvals, as well as resolving outstanding development issues. GE Vernova has been selected to supply the gas turbines for the Brigalow plant.
APA Group intends to mitigate wholesale price exposure through a proposed 25-year hedge offtake agreement with CS Energy. This agreement aims to deliver inflation-linked revenue, incorporating a variable upside component. APA will provide initial funding for the project until its equity acquisition is complete, with reimbursement provisions in place should long-form agreements not be finalised. Final capital expenditure will be determined following detailed engineering work, which is expected to be completed in the first half of 2026.
The power plant will connect to APA’s existing Roma-Brisbane Pipeline through a newly constructed lateral line. This connection is governed by a separate development and gas transportation agreement finalised in July. APA Group has stated that this investment aligns with its existing $2.1 billion organic growth pipeline and supports its strategic objective of expanding its gas-powered generation capacity.
