Swanbank E secures gas deal
QUEENSLAND energy company Stanwell’s mothballed Swanbank E power station near Ipswich will resume operations in January after securing a gas supply deal with Shell Australia.
Commissioned in 2002, the 385 megawatt (MW) gas-fired power station was put into care and maintenance in December 2014 when it became more profitable for the company to produce electricity from coal rather than gas.
In June, the State Government-owned company announced it would reopen the plant to increase domestic supply and reduce volatility in the State wholesale market.
QLD treasurer and acting energy minister Curtis Pitt said the government received a number of commercial offers for gas supply, with Shell Australia coming out as the preferred candidate.
“This strong response shows gas market players in Queensland are interested in doing business in the domestic market and have gas available and I congratulate Shell Australia and Stanwell for closing the deal,” Mr Pitt said.
The project will deliver 16 new jobs, with the first of the new employees set to begin work in October, with tests to start in November and December.
Swanbank E power station. Image: Stanwell.