APA signs transport, storage, development agreements for Hunter Power Project

APA sign transport, storage, development agreements for Hunter Power Project
Image courtesy of Snowy Hydro.

APA Group has signed gas transport, storage and development agreements for the Hunter Power Project, in New South Wales.

APA will construct, own and operate the Hunter Power Project’s gas pipeline connection to the Sydney -Newcastle pipeline, known as the Kurri Kurri Lateral, along with a 70 terajoule gas storage facility.

Along with Snowy 2.0, which is Australia’s largest committed renewable energy project, the Hunter Power Project will provide thousands of megawatts of new wind and solar plants.

By providing energy the Hunter Power Project will facilitate an estimated 1.5 to 2GW of renewables, or the equivalent of 160,000 household solar installations. The power station will have a capacity of 660 megawatts.

The power station will comprise two heavy-duty, open cycle gas turbines (OCGT). The OCGTs will operate on natural gas and will be hydrogen-ready. Diesel is available on-site as back-up for the extreme and rare cases where the NSW power grid needs it to keep the lights on. Over the power station’s life, diesel usage is negligible.

Snowy Hydro CEO Paul Broad said the Hunter Power Project would play a critical role in supplementing Snowy’s generation portfolio with dispatchable capacity when the needs of electricity consumers are highest.

“The Hunter Power Project will be good for prices, by filling the gap in electricity demand and offsetting potential cost increases resulting from the closure of the Liddell Power Station,” he said.

“The Hunter Power Project is on track and progressing well, with key milestones including naming CIMIC Group’s UGL as the Principal Contractor, as well as the signing of a major contract with Mitsubishi Power to deliver the hydrogen-ready open-cycle gas turbines.”

APA CEO and Managing Director, Rob Wheals, said APA was pleased to be working with Snowy Hydro on the Kurri Kurri Lateral.

“APA looks forward to delivering this key piece of infrastructure for the Hunter Power Project, which in turn should facilitate further expansion of renewable generation in the National Electricity Market. The current energy crisis has underscored the critical role that gas will continue to play in our energy mix, delivering affordable firming for renewable generation, energy security, and high heat capability for the industrial sector,” Wheals said.

For more information on the project, click here.



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