AGL takes ownership of Torrens Island power station

5 July 2007 – Australian utility AGL Energy has increased its power generation capacity by more than 60 per cent, after formally taking ownership of the 1280 MW gas fired Torrens Island power station in South Australia from TRUenergy yesterday.

As part of the transaction, which was first announced at the end of January, TRUenergy assumed ownership of the Hallett power station in return.

AGL’s generation capacity now stands at 3300 MW, either in current operation or under construction. According to the company, this represents close to a 100 per cent increase in less than a year.

AGL managing director Paul Anthony said that Torrens Island power station (TIP) provides approximately 25 per cent of South Australia’s electricity requirements. Anthony added that the plant, which has a verified remaining operating life of 25 years, would enhance the company’s position in low carbon emission electricity generation.

“More than 75 per cent of this [3300 MW] capacity comes from clean-burn gas, hydro or renewable sources, with planned development projects set to increase this to more than 85 per cent. By the end of the decade, AGL could be operating 134 wind turbines with a combined capacity of over 255 MW in South Australia,” Anthony revealed.

As part of the transaction, AGL has also acquired a 10-year, 300 petajoule gas sales agreement that expiries 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.” Anthony said.

AGL has also entered into a gas storage agreement with TRUenergy for a combination of firm and non-firm capacity at a facility at Port Campbell, Victoria, with the agreement through until 2017. The facility will deliver additional interruptible gas supply as required.