CSG will be processed at the Spring Gully processing plant and then transported through an existing gas pipeline to Wallumbilla. A new $90 million 200 km pipeline will be constructed from Wallumbilla to the new Darling Downs Power Station site.
In February this year, Origin secured $900 million for the development of the Darling Downs Power Station and ongoing CSG projects. The development will become one of the lowest cost power stations in the National Electricity Market, in part because Origin directly owns the CSG reserves that will fuel the power station, but also because, the power station is expected to have a low life cycle cost, including both construction and long-term maintenance costs.
Spurring the development of ‘economic powerhouses’
Not only is the Darling Downs Power Station poised to break records in terms of running cost, but Queensland Premier Anna Bligh has said that CSG projects, including the Darling Downs Power Station, have yielded approximately $1 billion worth of development across Queensland, benefiting the regional economy.
“We expect this investment to continue at more than $160 million a year and this means local jobs and a further boost to our regional economy,” Ms Bligh said. “This Origin power station and associated CSG developments alone will create an average of 440 jobs during the construction phases, and up to 55 jobs when operational.”