APA Group (ASX: APA) has signed a Joint Development Agreement with CS Energy to deliver the Brigalow Peaking Power Plant. The 400 MW gas power station will sit next to CS Energy’s existing Kogan Creek Power Station in Queensland. Once operational in 2028, the APA Group power plant project will provide firming capacity for peak electricity demand periods.
Figure 1: Brigalow Peaking Power Plant
The partnership positions APA to acquire an 80% ownership interest in the Brigalow Peaking Power Plant following entry into full form documentation. CS Energy will operate and maintain the facility while retaining a 20% ownership stake. The announcement came on Monday, 01 December 2025, expanding APA’s footprint in gas-powered generation across Australia’s east coast.
Partnership Framework and Ownership Arrangements
The APA Group power plant project will see the Company lead delivery under a construction management agreement. APA will acquire its 80% interest upon satisfaction of conditions precedent and completion of full form documentation. CS Energy’s 20% stake ensures operational continuity through its existing expertise at the adjacent Kogan Creek facility.
Development remains conditional and subject to necessary external and Government approvals. Finalisation of several development matters must occur before the partnership can proceed to full execution. APA expects to execute long-form agreements by the middle of calendar year 2026, with updates provided as the project progresses.
400 MW Peaking Power Station Technical Specifications and Timeline
The 400 MW peaking power station will complement variable renewable energy across Queensland’s grid. GE Vernova has been appointed to deliver the gas turbines for the Brigalow Power Plant. Final capital expenditure will be subject to detailed engineering design, expected to be completed in the first half of calendar year 2026.
Figure 2: APA Port Hedland Solar Farm and Battery project
The facility is scheduled to become operational in 2028, providing critical firming capacity during peak demand periods. The project will connect to APA’s Roma Brisbane Pipeline via a new lateral transport and storage pipeline. APA finalised a Project Development and Gas Transportation and Storage Agreement for this new pipeline in July 2025.
Brigalow Peaking Power Plant Revenue Model and Financial Returns
APA will limit exposure to wholesale electricity prices through a proposed 25-year hedge offtake agreement with CS Energy. The arrangement generates returns under an inflation-linked revenue structure, providing long-term predictability. The agreement also incorporates a small portion of variable revenue, creating potential for higher returns during favourable market conditions.
The Company expects the Brigalow Power Plant investment to deliver returns consistent with required return hurdles. Funding will come from existing balance sheet capacity, with the project forming part of APA’s AUD 2.1 billion organic growth pipeline. As part of the Joint Development Agreement, APA will provide early funding up to the date of acquiring its 80% interest.
APA Group Power Plant Project Expands Gas-Powered Generation Portfolio
The project builds on APA’s existing capabilities and assets in Queensland, driving momentum in the Company’s gas-powered generation growth strategy. APA CEO and Managing Director Adam Watson highlighted the alignment with the Company’s existing infrastructure. The lateral pipeline agreement with CS Energy creates operational synergies across the broader energy network.
Figure 3: The Port Hedland Power Station ensures reliable energy supply for the region’s critical mining operations and community
Significant investment in gas-powered generation capacity is needed to firm the integration of renewables in Australia’s energy system. The Australian Energy Market Operator’s 2024 Integrated System Plan forecasts that 13 gigawatts of new gas-powered generation investment will be required in the National Electricity Market. The Brigalow Power Plant addresses this identified capacity gap in Queensland.
Queensland Government Leadership in Energy Transition Through Brigalow Peaking Power Plant
CS Energy and the Queensland Government continue to demonstrate leadership in the energy transition. The delivery of new renewable power generation requires supporting gas-powered generation infrastructure for grid stability. The partnership reflects the Government’s commitment to balancing renewable integration with reliable firming capacity.
Adam Watson noted the project will create value for communities across Queensland, energy consumers, and APA securityholders. The Company welcomes the opportunity to partner with CS Energy and the Queensland Government. Continued investment supports energy security and transition along Australia’s east coast as coal-fired generation retires.
APA Share Price Movement
APA Group shares traded at AUD 9.205 as at 01 December 2025, giving the Company a market capitalisation of AUD 12.17 billion. The stock has traded in a 52-week range of AUD 6.490 to AUD 9.490 per share. The Brigalow Power Plant partnership demonstrates management’s commitment to strategic expansion within energy infrastructure.
Figure 4: APA Share Price Trend
Investors focused on energy transition infrastructure will assess the project’s contribution to APA’s organic growth pipeline. The 25-year inflation-linked revenue structure provides long-term cash flow visibility for securityholders. The Company’s strategic expansion into gas-powered generation aligns with broader energy transition requirements across the National Electricity Market.
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FAQs
Q1: What is the capacity of the Brigalow Peaking Power Plant?
The Brigalow Power Plant will have a capacity of 400 MW. The gas power station will be located next to CS Energy’s existing Kogan Creek Power Station in Queensland.
Q2: When will the APA Group power plant project become operational?
The project is scheduled to become operational in 2028. Development remains conditional and subject to necessary external and Government approvals.
Q3: What ownership stake will APA Group hold in the project?
APA will acquire an 80% ownership interest in the Brigalow Power Plant following entry into full form documentation. CS Energy will retain a 20% ownership interest and will operate and maintain the facility.
Q4: Who will supply the gas turbines for the Brigalow Peaking Power Plant?
GE Vernova has been appointed to deliver the gas turbines for the project. Final capital expenditure will be subject to detailed engineering design expected to complete in the first half of calendar year 2026.
