APA Group Finalises Agreement for Natural Gas Pipeline to Support Variable Energy Sources

APA Group Limited, a leading energy company in Australia, has announced the finalisation of a crucial agreement with CS Energy to build a natural gas pipeline connecting APA's Roma Brisbane Pipeline with CS Energy's proposed Brigalow Peaking Power Plant in Queensland. The power station, which will be located next to CS Energy's existing Kogan Creek Power Station, is designed to provide firming capacity for peak electricity demand periods, complementing variable wind and solar energy sources. APA will develop the pipeline, estimated to cost at least $150 million, and will operate it under a 35-year agreement with CS Energy.

Key Takeaways:

• APA Group Limited has finalised a Project Development Agreement and a Gas Transportation and Storage Agreement with CS Energy to deliver a natural gas pipeline connecting APA's Roma Brisbane Pipeline with CS Energy's proposed Brigalow Peaking Power Plant.
• The pipeline will be designed to provide both natural gas transmission and storage services and will be approximately 23-kilometres long.
• The Brigalow Peaking Power Plant will be built next to CS Energy's existing Kogan Creek Power Station and will provide firming capacity for peak electricity demand periods.
• The power station can start and stop multiple times daily and reach full output within five minutes.
• The development of CS Energy's Brigalow Peaking Power Plant and pipeline remains subject to necessary approvals.
• APA Group Limited will invest at least $150 million in the pipeline project, with final capital expenditure subject to detailed engineering design.
• Completion of the project is targeted for mid-2027, with detailed engineering design expected to be completed in Q3 FY2026.

Statistics:

• Estimated total construction cost for the pipeline project: at least $150 million.
• Length of the pipeline: approximately 23 kilometres.
• Duration of the Gas Transportation and Storage Agreement: 35 years.

Sources:

• APA Group Limited news release.