Australia’s APA Group said on Dec. 1 that it will partner with state-owned CS Energy to build the 400-megawatt Brigalow peaking power station in Queensland. The agreement marks APA’s first major gas-powered generation investment in several years and is expected to support electricity supply during periods of high demand and variable renewable output.
Project Structure and Ownership
APA group will provide early funding for the development and is expected to acquire an 80% stake by mid-2026. CS Energy will retain a 20% interest and operate the plant once it becomes operational. The companies plan to locate the facility next to CS Energy’s existing Kogan Creek site, with operations targeted to begin in 2028.
Analysts noted the ownership structure as uncommon because APA group will hold the majority share while CS Energy will run the plant. RBC Capital Markets analyst Gordon Ramsay said the arrangement stands out within the sector but added that he expects low delivery risk due to APA’s project experience.
Cost Estimates and Financing
Gross project cost is projected at about A$1 billion. RBC Capital Markets estimated APA’s share at roughly A$800 million. APA said it will fund its portion using existing balance sheet capacity as part of its A$2.1 billion organic growth program.
The company has not released a final capital expenditure figure for the project. It said the estimate will depend on detailed engineering design, which is scheduled for completion in the first half of calendar year 2026.
Strategic Significance for Energy Supply
The Brigalow plant is designed as a peaking station to help stabilize Queensland’s power system. It will provide firming capacity during times when renewable generation fluctuates or demand rises sharply. This aligns with broader state and national efforts to support the transition to cleaner energy while maintaining reliable supply.
APA group CEO and Managing Director Adam Watson said the project enhances the company’s position in Queensland and aligns with its growth strategy. He said the station will complement APA’s separate agreement with CS Energy to develop the project’s lateral pipeline.
The partnership demonstrates continued investment in flexible energy infrastructure at a time when Australia’s grid is adapting to increased renewable penetration. Further updates on design, cost, and construction timelines are expected as engineering work progresses.
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