Australia's APA Group and CS Energy have formalised a joint development agreement to develop and own a 400MW gas-fired power station, the Brigalow Peaking power project, near Chinchilla in the Western Downs in Queensland.
The proposed station will be next to CS Energy’s Kogan Creek power station.
The project will be operational in 2028 and will offer firming capacity during periods of peak electricity demand, supporting variable renewable energy sources.
The development of the Brigalow Peaking power plant remains subject to external and government approvals, finalisation of development matters and the execution of full form documentation.
APA will spearhead the project’s delivery under a construction management agreement following entry into full form documentation and will obtain an 80% ownership interest after meeting the required conditions.
CS Energy will maintain a 20% ownership stake and will be responsible for operating and maintaining the facility.
Final capital expenditure will be contingent on the detailed engineering design, to be completed in the first half of 2026.
GE Vernova has been selected to supply the gas turbines for the project.
APA intends to manage its exposure to wholesale electricity price fluctuations via a proposed 25-year hedge offtake agreement with CS Energy.
This arrangement is structured to provide APA with inflation-linked revenue, while also including a small variable revenue component that may offer potential for increased returns.
APA will provide initial funding for the project up to the point of acquiring its 80% interest.
The investment in the plant is anticipated to meet its return benchmarks and will be financed from existing resources.
Updates on the project, including the execution of long-form agreements, are expected around the middle of 2026.
This development will increase APA’s presence in gas-powered generation (GPG).
The plant will be linked to APA’s Roma Brisbane pipeline through a separate lateral transport and storage pipeline currently under development.
An agreement covering project development, gas transportation and storage for the new pipeline was completed in July 2025.
APA CEO and managing director Adam Watson stated: “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.”
