APA Group seals $1.27B Queensland power deal
- APA Group executed full-form agreements to acquire an 80% stake in Queensland's Brigalow Peaking Power Plant.
- The deal requires APA to contribute $1.02 billion towards the $1.27 billion total project cost.
- The investment expands APA's growth pipeline to support fast-start energy capacity for over 150,000 homes.
APA Group (ASX:APA) signed agreements with CS Energy to acquire an 80% stake in the $1.27 billion Brigalow Peaking Power Plant.
The agreement follows a previous joint development framework, securing long-term revenue backed by an inflation-linked 25-year hedge off-take agreement with CS Energy.
"The Brigalow Project aligns with the goals of the Queensland Government’s Energy Roadmap, supporting energy reliability and affordability and demonstrating the important role the private sector can play to bring critical energy infrastructure projects to life," said APA CEO and Managing Director Adam Watson.
Under the terms, APA will fund its $1.02 billion portion from balance sheet capacity and build a separate gas lateral and storage pipeline.
Targeting completion in early 2029, the 400MW plant will supply dispatchable energy to complement variable renewable generation.
Following the announcement, the APA share price was down 1% at $10.57.
The acquisition sits within APA's broader $3.5 billion organic growth pipeline aimed at delivering contracted energy infrastructure.
The deal continues a series of recent expansions by APA to grow its energy network across Australia's east and west coasts.
