APA Group (ASX: APA) today announces it has finalised the Project Development Agreement and the Gas Transportation and Storage Agreement with CS Energy to deliver a natural gas pipeline connecting APA’s Roma Brisbane Pipeline with CS Energy’s proposed Brigalow Peaking Power Plant in Queensland.
The natural gas power station will be built next to CS Energy’s existing Kogan Creek Power Station, near Chinchilla in the Western Downs, to provide firming capacity for peak electricity demand periods and complement variable wind and solar energy. The power station can start and stop multiple times daily and reach full output within five minutes. To connect the power station to the Roma Brisbane Pipeline, APA is building a new ~23-kilometre pipeline that will be designed and developed to provide both natural gas transmission and storage services.
APA will develop the pipeline under the Project Development Agreement and, on completion, own and operate the pipeline generating revenue under a 35-year Gas Transportation and Storage Agreement with CS Energy. Completion is targeted for mid-2027. APA’s total construction costs for the project are currently estimated to be at least $150 million.
Final capital expenditure will be subject to detailed engineering design, which is expected to be completed in Q3 FY2026.
The development of CS Energy’s Brigalow Peaking Power Plant and pipeline remains subject to necessary approvals.
“The completion of this agreement builds on our strategy to leverage our existing gas transmission network and capabilities to progress growth projects that deliver for investors and support energy security and transition along Australia’s east coast,” APA CEO and Managing Director Adam Watson said.
“Along with the recent announcement of our agreement to acquire the Atlas to Reedy Creek Pipeline and our ongoing East Coast Gas Grid Expansion work, this announcement demonstrates both our disciplined approach to capital allocation and the significant growth opportunities ahead in gas transmission and storage and gas-powered generation.”