Published Thursday, 25 May, 2006 at 10:12 AM
Deputy Premier, Treasurer and Minister for State Development, Trade and Innovation
The Honourable Anna Bligh
Mica Creek power station powering future of Mt Isa
The people and community of Mt Isa will be the winners when the Australian Gas Light Company and State Government-owned-corporation CS Energy sign a joint development agreement to explore the potential of upgrading the Mica Creek power station, the Deputy Premier and Treasurer, Anna Bligh, said today.
The Deputy Premier and Energy Minister John Mickel said under the terms of the joint agreement to be signed today, AGL and CS Energy will form a study team to together investigate expanding and redeveloping Mica Creek power station.
Ms Bligh said: “The study will examine the commercial viability of a station upgrade, long-term gas purchase and delivery arrangements and electricity sales contracts to current and potential consumers.”
“This significant project is good news for the people of Mt Isa and its local community as it will ensure a secure and reliable supply of gas to Mt Isa - an important region of growth to Queensland - as well as an upgrade to the power station.
“Equally important, the project is also good news for Queensland’s industry development as it’s about providing gas and capital for the Smart State, now and into the future,” she said.
Mr Mickel said for CS Energy, Queensland’s largest Government-owned generator, the project represented an opportunity for the organisation to experience further growth, particularly in its gas-fired portfolio.
”The joint agreement will allow CS Energy to focus on its core business, which is efficiently developing, operating and maintaining power stations,” he said.
Local MP Member for Mt Isa Tony McGrady said that he was pleased to reassure all Mica Creek Power Station employees that they will remain employees of CS Energy.
“This is another significant investment in the North West and further fuels talks of more jobs and opportunity,” he said.
“This announcement leaves the door ajar for further gas pipeline development,” said Mr McGrady.
The project, expected to cost between $150 – 200 million, will see CS Energy lead the development of and gas purchase agreement for the power station as well as operate and maintain the expanded station, while AGL will lead the long-term supply of gas supply and transportation agreements.
Ms Bligh said the joint agreement will take effect for 48 months from the date of execution.
“Both parties will jointly enter into power purchase agreements with relevant customers, and their initial work will also include, among other things, an environmental impact study,” Ms Bligh said.
“I congratulate CS Energy and AGL for their joint investment in the Smart State’s future,” she said.
Ms Bligh said that today agreement related only to the potential upgrade pf the Mica Creek Power Station, which is isolated from the National Electricity Market. The proposed joint venture is not related to the Government’s recent decision to seek private sector involvement in the Queensland electricity retail market.
Media contact: Deputy Premier’s Office 3224 4379, Minister’s Office 3225 1819, Speaker’s Office 3406 7170
The Deputy Premier and Energy Minister John Mickel said under the terms of the joint agreement to be signed today, AGL and CS Energy will form a study team to together investigate expanding and redeveloping Mica Creek power station.
Ms Bligh said: “The study will examine the commercial viability of a station upgrade, long-term gas purchase and delivery arrangements and electricity sales contracts to current and potential consumers.”
“This significant project is good news for the people of Mt Isa and its local community as it will ensure a secure and reliable supply of gas to Mt Isa - an important region of growth to Queensland - as well as an upgrade to the power station.
“Equally important, the project is also good news for Queensland’s industry development as it’s about providing gas and capital for the Smart State, now and into the future,” she said.
Mr Mickel said for CS Energy, Queensland’s largest Government-owned generator, the project represented an opportunity for the organisation to experience further growth, particularly in its gas-fired portfolio.
”The joint agreement will allow CS Energy to focus on its core business, which is efficiently developing, operating and maintaining power stations,” he said.
Local MP Member for Mt Isa Tony McGrady said that he was pleased to reassure all Mica Creek Power Station employees that they will remain employees of CS Energy.
“This is another significant investment in the North West and further fuels talks of more jobs and opportunity,” he said.
“This announcement leaves the door ajar for further gas pipeline development,” said Mr McGrady.
The project, expected to cost between $150 – 200 million, will see CS Energy lead the development of and gas purchase agreement for the power station as well as operate and maintain the expanded station, while AGL will lead the long-term supply of gas supply and transportation agreements.
Ms Bligh said the joint agreement will take effect for 48 months from the date of execution.
“Both parties will jointly enter into power purchase agreements with relevant customers, and their initial work will also include, among other things, an environmental impact study,” Ms Bligh said.
“I congratulate CS Energy and AGL for their joint investment in the Smart State’s future,” she said.
Ms Bligh said that today agreement related only to the potential upgrade pf the Mica Creek Power Station, which is isolated from the National Electricity Market. The proposed joint venture is not related to the Government’s recent decision to seek private sector involvement in the Queensland electricity retail market.
Media contact: Deputy Premier’s Office 3224 4379, Minister’s Office 3225 1819, Speaker’s Office 3406 7170