Leigh Creek Energy shares soar on a power station deal with Shanghai Electric

Shanghai, China. Feng Li/Getty Images

Leigh Creek Energy is now working with China giant Shanghai Electric Power Generation Group to build a coal gas-fired power station in South Australia.

A short time ago, Leigh Creek shares were up 16.67% to $0.32.

The Leigh Creek Energy Project in central South Australia, 550km north of Adelaide, plans to develop commercial quantities of gas in late 2018 for sale to the existing pipeline network.

The company announced today a heads of agreement with Shanghai Electric Power Generation Group to jointly build, own and operate a gas-fired power station.

“The generation of base load power through a gas-fired power station is important both to our company and to South Australia,” says Justyn Peters, executive chair of Leigh Creek.

“We see this as a great first step in our development as an energy company. The building, owning and operating of a power station ensures the success of our project, but also has the ability to provide cheaper, reliable power to industry and mines in South Australia.”

Leigh Creek Energy did a back door ASX listing last year via Marathon Resources.

Shanghai Electric is a diversified heavy industrial equipment manufacturing group listed on the Shanghai Stock Exchange.