24 Dec 2019

APA Group is pleased that its proposed 220MW gas generation project in Dandenong, Victoria, has been selected as one of the first two projects to progress to agreement of key initial support terms under the Federal Government’s Underwriting New Generation Investments program (UNGI).

APA Group CEO and Managing Director Rob Wheals said, “APA supports and commends the Government’s UNGI initiative, which is aimed at ensuring Australian households, business and industries get a fair deal on energy.

“More investment in energy infrastructure and increasing gas supply is required to ensure energy reliability for consumers as our energy system evolves.

“Gas-fired power provides for fast-start, flexible generation to support the stable operation of our national power system. It is also highly efficient, which helps to lower emissions. The proposed Dandenong power station will provide reliable, despatchable and sustainable energy generation.”

APA Group’s Dandenong Power Station project is a two-stage project. Stage 1 comprises 12 fast start, efficient, gas-fuelled reciprocating engines with a nameplate capacity of approximately 220MW of power generation. Stage 2 proposes to deliver an additional six generating units and deliver a further 110MW of gas-fired power generation.

The proposed Dandenong Power Station is ideally situated as it is close to both gas demand and supply, and will leverage APA’s existing energy infrastructure. APA’s Dandenong facility already has existing connections to gas transmission pipelines and APA’s LNG storage facility for gas supply, and its close proximity (7 kilometres) to the existing 220KV electricity transmission network provides for a highly consistent point of connection to the electricity transmission system servicing Melbourne.

Any investment in new infrastructure by APA will remain consistent with APA’s longer-term investment objectives of ensuring contracts for the energy offtake are underwritten by creditworthy counterparties.

“The agreement of key initial support terms to underwrite the Dandenong Power Station Project will assist in accelerating the delivery of more reliable and despatchable electricity to market,” said Mr Wheals. We look forward to continuing to work with the Federal Government and its key agencies to progress this important project.”