Origin Energy to Cancel Planned Capital Projects Due to Lower Electricity Demand in Australia

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Researched by Industrial Info Resources (Perth, Australia)--Origin Energy Limited postponed a 500-megawatt (MW) expansion at the Darling Downs natural gas power plant. The company is now forecasting that the consumer demand for electricity will be less than what it forecasted when the project was proposed in early 2011.

According to Origin's spokesperson, the company has delayed the development activities on the Darling Downs expansion project for at least another five years; until then, the company does not expect the market to alter.

The 500-MW natural gas-fired, simple-cycle power plant under proposal includes the addition of three 170-MW, F-class combustion turbines to the existing Darling Downs power plant that is currently in operation in Kogan, Queensland.

The existing power plant has a 630-MW capacity, features three gas turbines equipped with heat recovery steam generators (HRSG), and a steam turbine that is driven by the waste heat produced from the gas turbines. The power plant was built in 2008 and has been in operation since 2010. All the units are equipped with General Electric (GE) combustion turbines with a multi-shaft steam turbine. The gas turbines have a capacity of 120 MW each, and the steam turbine contributes the remaining 270 MW to produce a total of 630 MW. Darling Downs is considered one of Australia's cleanest base load power stations in terms of carbon emissions.

Origin Energy has few maintenance projects planned at Darling Downs throughout 2013, providing opportunities for contractors and subcontractors to register interests with the company.

The second project is the 500-MW Kerrawary natural gas power plant that was proposed by Origin in 2011 in Goulburn, New South Wales. The plant is due online during the first quarter of 2016. Origin Energy had to cancel or delay this project indefinitely due to a soft market for electricity in the region. According to the proposal, Origin had plans to expand this power plant to 1,000 MW upon the completion of the first phase of the project.

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