Stanwell Corporation Limited (Stanwell) has announced plans to withdraw its gas-fired Swanbank E Power Station near Ipswich from service.
Chief Executive Officer Richard Van Breda said Stanwell would withdraw the 385 MW Swanbank E Power Station from service for up to three years from 1 October 2014. Stanwell will sell the gas into the market rather than use it to generate electricity at the power station.
“With subdued market conditions and increasing gas prices expected to continue, Stanwell can earn more revenue from selling our gas rather than using it in electricity generation,” Mr Van Breda said.
“Stanwell is a commercial entity, operating in a highly competitive electricity market, and we need to pursue strategies that deliver the best return for our shareholders; the people of Queensland.”
Mr Van Breda said Stanwell would return a generating unit at Tarong Power Station to service later this year. Stanwell withdrew two units at Tarong Power Station from service in October and December 2012 as a result of subdued wholesale electricity prices.
“We expect to achieve significant financial benefits by replacing generation at Swanbank E with generation at the lower marginal cost Tarong Unit 4 and through the sale of Swanbank E gas,” Mr Van Breda said.
“The timing of Tarong Unit 4’s return to service is dependent upon the requirements of the market.”
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