APA and CS Energy to develop 400MW gas power station in Queensland

APA Group and CS Energy have announced a joint development to deliver a 400MW gas-fired power station in Queensland, aiming to bolster reliability across the state’s electricity system. The partners said the project is intended to provide dispatchable capacity to support the integration of intermittent renewable generation and help meet peak demand periods.

The proposed facility would act as firming capacity, available when wind and solar output is low, reducing reliance on emergency interventions and helping stabilise wholesale prices. APA, a major energy infrastructure owner and operator, brings project development and pipeline capabilities; CS Energy contributes generation experience and local market knowledge. Both parties said the project remains subject to regulatory approvals, environmental assessments and final commercial terms.

The firms did not disclose a construction timetable or a total capital estimate, stating only that progress will be informed by customer commitments and market conditions. They said the development will include planning for transmission connection and grid services to ensure operational flexibility. Local stakeholders and regulators will be engaged as planning advances, with employment and supply chain opportunities to be clarified during the permitting phase.

Industry analysts say new gas-fired capacity can play a transitional role by providing firm, controllable output that complements renewables, though it also raises questions about long-term decarbonisation pathways and emissions management. APA and CS Energy indicated they will explore measures to limit the project’s carbon footprint and align with broader energy transition objectives.

The announcement follows broader policy and market discussions in Australia about ensuring reliability as ageing coal plants retire and renewable capacity expands. If the project proceeds, the 400MW station would be among several new dispatchable projects proposed to meet seasonal peaks and system security needs in Queensland.

Both companies emphasised that the initiative is a commercial development at an early stage. Stakeholders and market participants will watch for further detail on location, financing, emissions mitigation strategies and a formal schedule for approvals and construction.