Key highlights

  • APA Group (ASX:APA) shares touched a 52-week high during the 19 October 2026 session and closed at $11.31, up 0.71%.
  • A 30 September 2026 announcement covers full-form agreements with CS Energy for APA to own 80% of the 400 MW Brigalow Peaking Power Plant in Queensland.
  • The total project cost is expected to be $1,269 million, with APA contributing about $1,015 million and a target completion in early 2029.

APA Group (ASX:APA) is an ASX-listed energy infrastructure Business that owns gas transmission, processing and storage assets, power generation and electricity transmission. The stock touched a 52-week high during the 19 October 2026 session and closed the day at $11.31, a gain of 0.71%. In an ASX announcement dated 30 September 2026, APA said it had executed full-form agreements with CS Energy to acquire a majority stake in the Brigalow Peaking Power Plant, a 400 MW gas power station in Queensland.

Project structure and cost

Brigalow is located next to CS Energy’s Kogan Creek Power Station near Chinchilla, Queensland. The total project cost is expected to be $1,269 million. APA will own 80% and contribute about $1,015 million, which it says will be funded from existing Balance Sheet capacity. APA will lead delivery under a construction management agreement. Once complete, CS Energy will operate and maintain the plant and retain a 20% ownership interest.

Revenue arrangements

The project’s returns are supported by an inflation-linked, 25-year hedge offtake agreement with CS Energy, which APA says limits its exposure to wholesale electricity prices linked to the plant’s operation. The agreement also includes a small portion of variable revenue. The project forms part of APA’s $3.5 billion organic growth pipeline, and APA says it is expected to deliver returns consistent with its hurdle rates.

APA is also delivering a new gas lateral and storage pipeline that will connect the plant to its Roma to Brisbane Pipeline, under a separate agreement with CS Energy. The announcement does not give the value of that agreement.

Construction and timing

The project is targeted for completion in early 2029. Early project works are complete, GE Vernova is delivering the gas turbines, and balance of plant contractor Monadelphous is moving forward to deliver the main construction works. The announcement describes the plant as fast-start, dispatchable capacity that can complement variable renewable energy and Supply the equivalent of more than 150,000 homes when needed.

About APA

APA describes itself as owning and operating a portfolio of more than $20 billion of assets, delivering around half of Australia’s domestic gas through more than 15,000 kilometres of pipelines, and also owning battery storage and electricity transmission infrastructure. APA Infrastructure Limited is the borrowing entity of the group.

Sector backdrop

The benchmark index finished the 19 October 2026 session higher. The S&P/ASX 200 (ASX: XJO) stood at 8,845.70 at 4:25 pm (GMT+11) on 19 October 2026, up 0.44%, or 39.00 points, for the day. On the sector map, Energy rose 2.16%, the largest gain among the labelled segments, and Utilities rose 0.38%. More broadly, Energy rose 2.16%, Industrials 0.93%, Financials 0.85%, Utilities 0.38% and Consumer Staples 0.25%, while Information Technology fell 1.35%, A-REIT 0.34%, Consumer Discretionary 0.18%, Telecommunication Services 0.16% and Health Care 0.13%; one unlabelled segment rose 0.11%.

The Brigalow announcement is dated 30 September 2026, which is 19 days before the 19 October session, and it does not discuss share price movements.

Risks shareholders should weigh

The project is large relative to many individual assets, with APA’s share of about $1,015 million to be funded from existing balance sheet capacity. Construction projects of this kind carry risks of cost and schedule changes, and the announcement gives a target rather than a guaranteed completion date of early 2029.

The Revenue arrangement relies on a single counterparty, CS Energy, under a 25-year offtake agreement, with a small portion of variable revenue that is exposed to market conditions. Gas supply, turbine delivery and contractor performance are further dependencies. The gas lateral and storage pipeline are governed by a separate agreement whose terms are not disclosed in the announcement.

What’s next

The next steps in the announcement are main construction works by Monadelphous, delivery of the gas turbines by GE Vernova, construction of the gas lateral and storage pipeline, and completion targeted for early 2029, after which CS Energy will operate and maintain the plant. APA says it continues to progress further contracted power generation opportunities on the east and west coasts.