APA buys out QLD gas power station

APA Group has secured 100 per cent ownership of the Diamantina Power Station project after purchasing AGL’s half of the project for $151 million.

The Diamantina Power Station project (DPS) is a large scale gas-fired power station that owns and operates two separate power facilities with shared infrastructure – the 242 MW combined cycle gas turbine Diamantina Power Station and the adjacent 60 MW open cycle gas turbine Leichhardt Power Station.

APA Group Managing Director Mick McCormack said “We are pleased to have had the opportunity to acquire the remaining 50 per cent interest in DPS and become the sole owner of this quality asset.

The acquisition fits with APA’s growth strategy to build out our energy infrastructure business to leverage our asset management, development and operational capabilities.

“DPS complements our existing energy infrastructure portfolio as it is connected to APA’s east coast gas grid and is underwritten by two highly creditworthy counterparties.

“APA is well positioned to continue to provide essential energy to businesses and communities in the mineral-rich North West Queensland region well into the future.”

DPS receives gas via APA’s Carpentaria Gas Pipeline and supplies electricity under long term contracts with Glencore’s Mount Isa Mines and Queensland Government owned Ergon Energy.

AGL will continue to supply gas to DPS, under an existing long-term gas supply contract.

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