AGL has been approached by Alinta Energy expressing an interest in entering negotiations to acquire the Liddell Power Station as the Federal Government continues to push AGL to sell the station rather than close it down.
AGL is hesitant to sell Liddell as it will require its infrastructure for replacement plans into the future once the plant stops generating in 2022.
Minister for Energy, Josh Frydenberg, said remediating the power plant would be very expensive, and Alinta would be willing to keep on supplying AGL with power from Liddell before 2022, to ensure it did not have to deal with any shortfalls.
“The board as well as management have a responsibility to put an offer to its shareholders and properly consider (the expression of interest),” Mr Frydenberg said.
Environmental groups have warned that keeping Liddell open would cost huge amounts of money, as well as substantially boost pollution — and AGL has so far resisted pressure from the government to sell Liddell.
AGL has said should a formal offer be received it would be given consideration in order to meet its obligations to customers and shareholders.