Infratil entity buys gas power plant

File photo / Thinkstock

Infratil Energy Australia, which is owned by Infratil, is buying a site for a gas-fired power plant south of Sydney as part of the New South Wales energy privatisation process.

IEA is paying A$9 million ($11.9 million) for the Bamarang generation development site, located approximately 160km south of Sydney.

"It is considered a quality site for the development of a gas-fired power plant given its close proximity to gas and water supply pipelines, the high voltage transmission network and project approvals already in place for gas turbines with capacity up to 450MW," Infratil said in a statement to NZX. IEA already owns three peaking power stations totalling 100MW capacity.

IEA chief executive Darryl Flukes said Infratil was pleased to obtain this site in its portfolio.

Infratil wrote in its January investor newsletter that after 13 years of uncertainty and controversy NSW had finally concluded the sale of state-owned retailing businesses and part of the state's generation capacity in transactions with TRU Energy and Origin Energy.

"The industry structure resulting from the sales is likely to favour competition and organic growth," Infratil wrote.

It said that while the NSW state government had put further major energy asset sales on hold, there was still the reasonable prospect that a number of development sites would become available.

It would assist the further development of IEA's generation strategy if it was able to procure a site consented for the construction of a power station.

Infratil owns 100 per cent of IEA and 82 per cent of Perth Energy. Infratil valued the IEA Group at $256 million in its last annual report.

- NZPA