Australia’s APA Group and CS Energy have solidified their partnership to develop the 400MW Brigalow Peaking power project near Chinchilla in Queensland. This gas-fired power station, slated for operation in 2028, aims to provide firming capacity during peak electricity demand, thereby supporting the integration of variable renewable energy sources into the grid.
APA will take the helm of the project’s delivery under a construction management agreement, following the finalisation of full form documentation. The company will also secure an 80% ownership interest once certain conditions are met, with CS Energy retaining a 20% stake and responsibility for the facility’s operation and maintenance. GE Vernova has been chosen to supply the gas turbines for the project.
The project’s final capital expenditure will be determined after the completion of detailed engineering design in the first half of 2026. APA plans to mitigate exposure to wholesale electricity price fluctuations through a proposed 25-year hedge offtake agreement with CS Energy. This agreement is designed to provide APA with inflation-linked revenue, along with a small variable revenue component that could potentially enhance returns.
APA will initially fund the project up to the point of acquiring its 80% interest, with the investment expected to meet return benchmarks and be financed from existing resources. Updates on the project, including the execution of long-form agreements, are anticipated around the middle of 2026.
This development marks a significant expansion of APA’s presence in gas-powered generation (GPG). The Brigalow Peaking power plant will be connected 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 emphasised the project’s role in supporting the energy transition: “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 is expected to create value for communities across Queensland, energy consumers, and APA securityholders. This initiative underscores the growing collaboration between energy companies and governments to ensure energy security and facilitate the transition to a more sustainable energy mix.
The Brigalow Peaking power project could set a precedent for similar developments, highlighting the importance of gas-fired power stations in supporting renewable energy integration. As Australia continues to grapple with the challenges of energy transition, such projects may become increasingly common, shaping the future of the energy sector. The success of this venture will depend on navigating regulatory approvals, finalising development matters, and executing full form documentation, all of which will be critical in determining the project’s trajectory and its impact on the broader energy landscape.