The company had an engineering, procurement and construction contract for this project with General Electric (GE) and Leighton Holdings.
The first phase involved construction of 500MW of power generating capacity, according to the company’s presentation given in August.
"The economic viability of this project had been under review for several months because of market conditions," AGL Energy said in a statement to the Australian Securities Exchange.
The firm operates retail and merchant energy businesses, an upstream gas portfolio and power generation assets in the country.
