New gas power station for Townsville
Posted: 27 October 2005
The Australian Gas Light Company (AGL) reported plans to develop a new gas-fired power station in Townsville in North Queensland.
The 370 megawatt base load power station will be supplied with gas from AGL’s wholesale gas portfolio and is expected to consume around 20 petajoules per annum. Timing for construction of the $350 million power station will be driven by the expanding requirements of the North Queensland energy market, with a planned commencement date in 2009, coinciding with the arrival of Papua New Guinea gas into Townsville.
“AGL’s commitment to develop this power station follows the recent announcement by the Queensland Government to open gas and electricity markets to full retail contestability and reflects AGL's confidence in the long term outlook for energy demand in North Queensland,” AGL Managing Director, Greg Martin said.
“This initiative supports AGL's intentions to participate more widely in the Queensland retail gas and electricity markets in the future. In the Queensland Government’s recently announced Special Fiscal and Economic Statement, electricity consumption in North Queensland is forecast to grow by 7.8 per cent per year over the next two years and 2.8 per cent per year over the next ten years.”
Mr Martin said the Townsville power station would generate electricity using a combined cycle gas turbine with the latest high efficiency technology, providing significant environmental performance benefits over traditional coal fired power generation.
“AGL will be working closely with the Queensland Government and other local authorities regarding approval processes and the opportunity the project offers for attracting other industrial customers to the recently declared Townsville State Development Area,” Mr Martin added.
“The power station will bring greater competition to wholesale electricity prices in Townsville, aligning with the Queensland Government’s intention to provide enhanced opportunities to attract major industry investment and further economic development for the region.”
AGL is Australia’s largest energy retailer with more than 2.8 million customer accounts, and has the largest wholesale gas portfolio including contracts with Queensland coal seam methane producers, as well as the Gippsland (Victoria) and Cooper Basin producers (South Australia and Queensland). AGL recently announced its intention to commit to 1,500 PJ of gas from the PNG Gas project and acquire a 10 per cent upstream project stake from Oil Search Limited.
Several potential sites within 40 kilometres of Townsville are currently being considered for the plant.
For more information see www.agl.com.au
Posted by Richard Price, Editor, EnergyME.com
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