Core Points - The company has signed a joint development agreement with CS Energy to develop and own the Brigalow Peaking power plant, marking its first major GPG project in some time [1][2] - APA will develop and own 80% of the Brigalow power plant, while CS Energy will own the remaining 20%, indicating a strategic partnership [2]

Core Insights - APA Group has signed a Joint Development Agreement with CS Energy to develop the 400MW Brigalow Peaking Power Plant in Queensland, enhancing its gas-powered generation capacity [1][2] - APA will hold an 80% ownership stake in the project, while CS Energy will retain 20% and operate the plant, which is expected to commence operations in 2028 [2][5] - The project aims to provide firming capacity during peak electricity demand, supporting the growth of renewable energy in Queensland [2][5] Financial and Operational Aspects - APA plans to enter a 25-year hedge offtake agreement with CS Energy, which will provide inflation-linked revenues and a variable component for potential upside [4] - The project is expected to meet APA's internal investment hurdles and will be funded from its existing balance-sheet capacity as part of a A$2.1 billion organic growth pipeline [4] - GE Vernova has been selected to supply gas turbines, with final capital expenditure to be determined after detailed engineering in early 2026 [3] Strategic Importance - The Brigalow project is positioned to address reliability challenges in Australia due to the rapid rollout of renewables and coal retirements [5] - The plant will connect to APA's Roma–Brisbane Pipeline, leveraging existing gas transmission infrastructure and aligning with a prior agreement for a new lateral pipeline [6] - The project supports Queensland's energy-transition agenda, contributing to renewable energy rollout and energy security commitments, while enhancing investor confidence in APA's growth in gas transmission and storage [7]