In other news, gas supplier Alinta has been given permission by the competition regulator to launch a takeover bid for APT, but has opted not to exercise this right.
APT today said the 30MW Xstrata power station would be built to meet demand from its planned expansion in production over the next 18 months.
The power station will be fuelled by natural gas transported on the Carpentaria Gas pipeline to Mt Isa and then to the Xstrata mine lease through the Mt Isa Town lateral pipeline. Both are 100% owned by APT.
It is APT’s second investment in a gas-fired power station, following the Daandine station at Kogan, west of Brisbane.
APT said it would also transport additional gas on the Carpentaria Gas pipeline and invest another $3 million to expand the Mt Isa Town lateral pipeline.
The company said it expects to earn about another $8 million in revenue from the power station.
Meanwhile, the Australian Competition and Consumer Commission (ACCC) yesterday said Alinta would not have to sell its stake in APT, but only if APT divests its holding in the Moomba-Sydney pipeline, Parmelia pipeline and recently-acquired GasNet.
The ACCC said it would slightly adjust the undertakings made by Alinta on August 3, which require the utility to sell its stake in APT and the former AGL-Agility contracts.
Alinta currently holds a 35% stake in APT, which owns or has an interest in 8000km of Australian gas pipelines.
