Australia's APA joins Queensland in building Brigalow Power Station
The APA Group, an Australian company, announced on Monday that it had agreed to build the 400-megawatt Brigalow Peaking Power Station in Queensland proposed by CS Energy.
According to a research note by RBC Capital Markets, this is the first major GPG investment made by APA in a long time.
The plant is expected to begin operations in 2028, next to CS Energy’s Kogan Creek facility. It was designed to stabilize supply during times of high demand or intermittent renewable output.
APA will fund the project early and will eventually acquire 80% by mid-2026. CS Energy will maintain a 20% stake in the plant and will operate it.
RBC Capital Markets' Gordon Ramsay called this ownership split "somewhat uncommon" due to APA's major interest. He also expects that the project delivery risks will be low.
Adam Watson, APA's CEO and Managing director, said: "This project builds upon APA's current capabilities and assets in Queensland. It will drive momentum in our GPG Growth Strategy and complement our separate agreement between CS Energy and APA to deliver the project lateral pipeline."
RBC Capital Markets estimates that the gross project cost will be around A$1 Billion ($654.40 Million), and APA's share of this is approximately A$800 M. The investment will be funded from the company's existing balance sheet, as part of its A$2.1billion organic growth pipeline.
APA has not provided a capital budget estimate.
The company stated that the final capital expenditures will be subjected to detailed engineering designs, which are expected to be finished in the first half calendar year 2026.
(source: Reuters)
