Origin Energy (ASX:ORG), an Australian gas and electricity company, will commit $80 million to expand the capacity of its gas-fired Quarantine Power Station, saying it will add to the security of electricity supplies in South Australia.
The power station expansion will be located about 25 km north Adelaideâ€™s city center at Torrens Island, Origina announced in a statement on Thursday. The project includes the construction of a 120 MegaWatt (MW) peaking power generator next to the existing 95 MW installation, it said.
The $80 million power station expansion will be supplied with natural gas through the SEA Gas Pipeline that connects Adelaide with the southeast Australian gas network.
â€œThis investment demonstrates the private sectorâ€™s commitment and ability to deliver new energy capacity to meet growing demand in South Australia and the eastern states,â€ Originâ€™s Managing Director Mr Grant King said.
The development plan received stateâ€™s approval in March and today, a contract will be signed with General Electric Company for the supply of a 120 MW Frame 9E gas turbine generator set.
Origin expects the power stationâ€™s expansion to be completed in the December quarter of 2008, in time to provide additional peak electricity capacity for that summer, and the summer of 2009.
Mr King added thatâ€œthe expansion reflects the deepening integration of Originâ€™s energy business across eastern Australia.â€