Australian utility AGL Energy has increased its power generation capacity by more than 60%, after formally taking ownership of the 1,280MW gas-fired Torrens Island power station in South Australia from TRUenergy.
As part of the transaction, which was first announced on January 29, 2007, TRUenergy assumed ownership of the Hallett power station in return.
AGL’s generation capacity now stands at 3,300MW, either in current operation or under construction. According to the company, this is almost a 100% increase in less than a year.
AGL managing director Paul Anthony said that Torrens Island power station (TIPS) provides approximately 25% of South Australia’s electricity requirements. Mr Anthony added that the plant, which has a verified remaining operating life of 25 years, will enhance the company’s position in low carbon emission electricity generation.
More than 75% of this capacity comes from clean-burn gas, hydro or renewable sources with planned development projects set to increase this to more than 85%. By the end of the decade, AGL could be operating 134 wind turbines with a combined capacity of over 255MW in South Australia, Mr Anthony revealed.
As part of the transaction, AGL has also acquired a 10-year, 300 petajoule, gas sales agreement expiring in 2017, together with the associated SEAGas pipeline haulage contract which expires in 2019.
The sales agreement and haulage contract will deliver AGL more options for supplying TIPS’s ongoing fuel requirements and for meeting the needs of AGL’s existing South Australian retail and commercial and industrial customer base. Mr Anthony said.
AGL has also entered into a gas storage agreement with TRUenergy for a combination of firm and non-firm capacity at the WUGS facility at Port Campbell, Victoria, with the agreement through until 2017. The facility will deliver additional interruptible gas supply as required, as well as providing synergies between AGL’s generation and gas market portfolios.