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Australian state-owned utility CS Energy’s gas-fired 400MW Brigalow Peaking Power Plant in Queensland will come on line in late 2028, a year later than originally announced.

The delay comes as CS has formed a joint venture with Australian gas infrastructure firm APA to fund Brigalow, APA said on 1 December. APA will take a 80pc non-operated stake in the project for which it will building a connection to the gas grid, while CS will control the remaining 20pc and operate the facility.

Construction of the plant will take three years and will include the installation of 12 gas turbines, with the power plant now set to be commissioned at the end of 2028, a CS spokesperson said.

The project will cost about A$1bn ($650mn), an analyst with RBC Capital Markets said. The companies expect to complete an engineering design before June 2026, which will determine project costs.

CS recently announced a gas supply agreement with Australian gas company Senex Energy for up to 58.4PJ (1.56bn m³) over 10 years.

Queensland’s conservative Liberal National Party government included [A$479mn] (https://direct.argusmedia.com/newsandanalysis/article/2744404) in its 2025-26 state budget for the Brigalow peaking plant.

This investment is in line with the state’s five-year energy roadmap released in October, which outlines plans to keep coal-fired power plants operational until the late-2030s and mid-2040s and to introduce new gas-fired capacity.

Queensland’s electricity generation in the last 12 months consisted of 72pc black coal, 11pc solar and a 7pc share each for gas and wind, data from the Australian Energy Market Operator show. The state has the highest percentage of black coal generation in the national energy market, followed by New South Wales’ 68pc.

By Susannah Cornford