Australian energy infrastructure business, APA Group, announced the execution of a design and development agreement with CS Energy for the establishment of twin gas pipelines.
The pipelines are set to connect to CS Energy's proposed Brigalow Peaking Power Plant in Queensland.
The agreement, which remains conditional, is subject to various internal and external approvals, including from the government, and the finalisation of several development matters between APA and CS Energy.
This includes the negotiation and entry into a full project development agreement and a gas transportation and storage agreement.
The twin pipelines will be connected to APA's Roma Brisbane Pipeline and will link to the hydrogen-ready gas-fired power station at CS Energy’s Kogan Clean Energy Hub near Chinchilla.
Designed to be hydrogen capable, the pipelines have potential for future conversion to a hydrogen service.
APA Group intends to develop, own, and operate the gas and storage pipelines, each spanning approximately 23kms.
Completion is targeted for mid to late 2026, with an estimated construction cost of at least $140 million, pending detailed engineering designs expected by early 2025.
"This agreement demonstrates the significant growth opportunities ahead for APA as we continue to leverage our existing gas transmission network and capabilities to progress vital new infrastructure that supports energy reliability and Australia's transition to renewables," said APA CEO and Managing Director Adam Watson.
At the time of reporting, APA Group's share price was $7.90.