APA Group, a top Australian energy company, has agreed to a major joint project with CS Energy. Together they will build the new Brigalow Peaking Power Plant in Queensland. This move is a key part of APA’s plan to grow into energy generation.

Under the deal, APA will manage the project’s development and will eventually own 80% of the power plant. CS Energy will keep a 20% share and will run the plant day to day.

The plant is an important project for Queensland’s power grid. It will be built next to CS Energy’s existing Kogan Creek Power Station.

It will have a capacity of 400 megawatts, enough power for over 150,000 homes during peak times. The total cost is expected to be more than one billion Australian dollars. APA will pay for its share using its existing funds.

The facility will use 12 fast start turbines from GE Vernova. These can reach full power in just five minutes. The plant is also designed to use hydrogen fuel in the future, supporting cleaner energy goals. Site work will start in December 2025, and the plant should be running by late 2028.

A central part of the agreement is a 25 year power purchase contract with CS Energy. This gives APA a stable, long term revenue stream that is linked to inflation, much like a toll road for energy.

APA’s CEO, Adam Watson, said this project shows their focused investment strategy. He explained the long term contract provides predictable returns while limiting risk from changing electricity prices.

The plant will provide essential backup power for Queensland. It will quickly supply electricity when demand is high or when solar and wind power are low. This helps keep the grid stable as more renewable energy is added.

Additionally, APA will build a new 23 kilometre pipeline to connect this plant to its main gas network. The company aims to finalize all contracts by mid 2026 and supports Queensland’s energy goals. APA Group owns and operates a large network of gas and electricity assets across Australia.