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Origin Energy to provide gas to Pelican Point plant in SA

Origin Energy to provide gas to Pelican Point plant in SA

The chance of blackouts in South Australia next summer has been reduced by deals struck between Origin Energy and Engie that will enable the restart of the second turbine at the French firm's Pelican Point generator.

Origin signed up for 240 megawatts of generation from the plant near Adelaide and will also supply gas to Engie, justifying a $40 million upgrade so the turbine can run on a regular basis.

Engie has said it isn't profitable to run the unit for just a few days a year.

Federal Energy Minister Josh Frydenberg claimed some credit for the move, saying it was helped by Prime Minister Malcolm Turnbull threatening gas suppliers with export controls unless they freed up more for domestic use.

Financial Review

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