Gas-fired power plants in doubt

MORE than a billion dollars worth of investment in gas-fired power stations at Tarrone and Shaw River is in doubt. 

Developers of two separate power stations are staying tight-lipped on whether the massive projects will ever take shape. 

International energy group Santos confirmed its $800 million Shaw River power station near Orford was on hold. 

While the company declined to issue any comment on the project, it did confirm that falling electricity demand combined with rising demand in natural gas had stalled the project. 

The power station was lauded when first announced in 2008 promising to generate enough electricity for two million homes. 

Santos told The Standard in 2008 the 1500-megawatt station would be connected by a 105-kilometre underground pipeline to Iona, near Port Campbell.

Meanwhile, power giant AGL Australia has been elusive about its plans for the $600 million gas-fired Tarrone power station. The company issued a single statement confirming it would still consider the 480-megawatt project, but with no fixed date on construction. 

“AGL Energy Limited continues to review all options for power development, including the Tarrone power project,” a company spokesperson said. 

Planning approvals were issued for the power station more than two years ago. 

The project was hailed as a boom for the local economy in 2012, promising to deliver up to 100 construction jobs.

Neither company would provide comment on what market conditions were needed to kick start investment. 

Moyne Shire’s co-ordinator of energy and major projects, Russell Guest, said the council had not received any updates on the status of the projects. 


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