APA Group is acquiring AGL Energy’s half share of the Diamantina Power Station (DPS) project near Mount Isa for $151 million, with financial close expected on Thursday.
The transaction covers the 242MW Diamantina Power Station and the adjacent 60MW Leichhardt Power Station near Mount Isa.
“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,” APA managing director Mick McCormack said.
“The acquisition fits with APA’s growth strategy to build out our energy infrastructure business and 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.”
AGL will continue to supply gas to the power stations under an existing long-term gas supply contract.
DPS receives gas via APA’s Carpentaria Gas Pipeline and supplies electricity under long-term contracts with Glencore’s Mount Isa Mines and Ergon Energy.