Australia’s AGL Energy shelves $1-bn power project due to weak demand
20 Oct 2012
AGL Energy Ltd, one of Australia's leading integrated energy companies, has shelved its plans to build a $1-billion gas-fired power station in New South Wales (NSW) due to poor demand and state price regulations.
In a release submitted to the Australian Stock Exchange (ASX) yesterday, AGL said that it is suspending development of the first stage of its 1,000 megawatt (MW) Dalton power station near Canberra in NSW.
AGL got the state and federal government approvals for the project last month. It said that the approvals remained valid for the next five years.
The first stage of the project consists of a 500-MW power plant, construction of which was expected to begin in the current quarter.
The project's engineering, procurement and construction contract has been awarded to General Electric Co and Leighton Holdings Ltd.
Sydney-based AGL has been operating in Australia for 175 years and runs retail and merchant energy businesses, power generation assets and upstream gas operations. It has a diverse power generation portfolio consisting of traditional thermal generation as well as renewable sources.
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