Australia’s AGL is to purchase the 1,280 MW Torrens Island gas-fired power station from TRUenergy for A$417 million ($326 million). The acquisition will hike AGL’s generation capacity to approximately 3,170 MW.
Also as part of the transaction, AGL is to sell its 180 MW gas-fired peaking plant at Hallett in South Astralia to TRUenergy for A$117 million ($91 million).
AGL managing director Paul Anthony said AGL would examine existing opportunities to further expand capacity at the site, including a biodiesel project which TRUenergy had been developing in a joint venture with another party.
The station swap comes as AGL Energy opens talks on a potential merger of equals with Queensland power player Origin Energy. Origin, meanwhile, has announced it is accelerating a project to build a 500 MW gas-fired power station near Braemar in the Darling Downs region of Queensland.