Australia's AGL to demerge gas assets

Australian utility AGL Energy said on June 30 it planned to demerge into two separate entities that will both be listed on the Australian Securities Exchange.

AGL Energy will become Accel Energy, retaining control of AGL's gas-based electricity generation business "focused on the accelerating energy transition". These assets include the Torrens Island A power plant, where two 120-MW units were closed last year, as part of the 480-MW facility's phased closure. The firm's 800-MW Torrens Islands B station will remain operational.

Accel will also oversee the development of a 250-MW grid-scale battery plant at Torrens Island. AGL supplies additional power via its Yang A and Macquarie Generation assets, which will also fall under Accel's control.

Accel will also gain the Newcastle gas storage facility and Silver Springs gas project, which are both slated to be sold within the next year. And it will secure AGL's 50% interest in the Moranbah gas joint venture in the Bowen basin of Queensland. Its partner there is Arrow Energy, a joint venture between Shell and China's PetroChina.

Accel will also become Australia's largest operator and offtaker of wind energy via the Macarthur, Hallett, Wattle Point and Oaklands Hill wind farms, with the potential to develop 1,600 MW of new wind capacity.

AGL's remaining assets will be transferred to the newly-created AGL Australia, which will serve as a "leading multi-product energy retailer backed by flexible energy trading, storage and supply." These assets include the 210-MW Baker Inlet gas peaking power plant in south Australia, the 150-MW Somerton gas peaking plant in Victoria and the 120-MW Kwinana gas peaking plant in western Australia.

AGL expects to wrap up the demerger by the end of June next year, with Accel set to retain a 15-20% interest in AGL Australia.