APA secures 80% stake in Queensland’s Brigalow power project
3 min read
12:21pm on Wednesday 30th of September, 2026 AEST ~12pm, 30th Sept, 26
APA Group will invest approximately $1.015 billion for an 80% stake in a new 400MW gas peaking plant in Queensland, backed by a 25-year inflation-linked hedge with CS Energy. The Brigalow project is targeted for completion in early 2029 and expands APA’s contracted power generation portfolio.
- APA to own 80% of the $1.269 billion Brigalow project
- 400MW fast-start gas plant targeted for early 2029
- 25-year inflation-linked hedge limits wholesale electricity exposure
- APA will fund its stake from existing balance sheet capacity
- GE Vernova and Monadelphous moving into construction
APA locks in majority stake in 400MW Brigalow plant
APA Group (ASX:APA) is committing approximately $1.015 billion to an 80% stake in a new 400MW gas peaking plant near Chinchilla, Queensland, turning one of its planned growth projects into a signed infrastructure investment. The total project cost is expected to be $1.269 billion, with CS Energy retaining the remaining 20% and taking responsibility for operating and maintaining the plant once it is complete.
The Brigalow Peaking Power Plant will be built beside CS Energy’s Kogan Creek Power Station and is designed to provide fast-start generation when variable renewable output is unavailable or insufficient. APA says the plant will provide enough power for the equivalent of more than 150,000 homes, although the announcement does not disclose an expected earnings contribution or project return.
25-year hedge provides revenue visibility
The investment’s defining feature is its contracted revenue structure. A 25-year hedge offtake agreement with CS Energy will be inflation-linked and is intended to limit APA’s exposure to wholesale electricity prices generated by the plant. The agreement also includes a small variable revenue component, leaving some exposure to operating performance or market conditions, although its precise terms were not disclosed.
APA says the project is expected to deliver returns consistent with its hurdle rates and will be funded from existing balance sheet capacity. That makes the announcement a sizeable allocation of capital without a separately announced equity raising or project financing package. The filing does not provide debt metrics, construction contingencies or a detailed spending schedule against the $1.269 billion estimate.
Construction moves towards early 2029 completion
Early project works are complete, GE Vernova is supplying the gas turbines and Monadelphous is progressing the main construction works under a balance-of-plant contract. APA will lead delivery through a construction management agreement, while CS Energy will operate the facility after completion.
The plant will also depend on associated gas infrastructure. APA is delivering a new gas lateral and storage pipeline under a separate agreement with CS Energy, connecting Brigalow to APA’s Roma to Brisbane Pipeline. The next test for the project is therefore not the headline capacity, but whether construction, gas connection works and the total capital cost remain aligned with the early 2029 target.
Bottom Line?
APA has secured long-duration revenue support for a major new power asset, but the investment case will become clearer as construction costs, delivery milestones and the variable revenue component emerge.
Questions in the middle?
- Will the $1.269 billion project cost remain intact as main construction advances?
- How much earnings and cash flow will Brigalow contribute once the plant reaches operation?
- Will the gas lateral and storage pipeline be delivered on the same timetable as the power station?
