APA Group has finalised agreements with CS Energy to acquire a majority ownership stake in the Brigalow Peaking Power Plant, being developed at an expected cost of $1.269 billion.

APA will own 80 per cent of the project, contributing about $1.015 billion, and will lead delivery under a construction management agreement.

CS Energy will operate the 400MW gas-fired plant, being built beside the Kogan Creek Power Station near Chinchilla, and retain a 20 per cent ownership interest.

The Brigalow project is targeted for completion in early 2029.

APA Group (ASX: APA) said early project works were now complete, GE Vernova was delivering the gas turbines and Monadelphous was moving forward to deliver main construction works.

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“We are pleased to confirm this partnership with CS Energy to support Queensland’s energy security and transition,” APA chief executive officer and managing director Adam Watson said.

“The Brigalow project aligns with the goals of the Queensland Government’s Energy Roadmap, supporting energy reliability and affordability and demonstrating the important role the private sector can play to bring critical energy infrastructure projects to life.

The project forms part of APA’s $3.5 billion organic growth pipeline.

The company is also delivering a new gas lateral and storage pipeline that will connect the plant to APA’s Roma to Brisbane Pipeline under a separate agreement with CS Energy.