South Australia's gas power plant may be built at Tepko, between Mannum and Murray Bridge

The letter

The letter

The location of SA's proposed gas power plant is still a secret – but judge for yourself what the premier says about Tepko.

In a letter to the Mid Murray Council, Premier Jay Weatherill remained guarded about the ongoing tender process which would guide the state government's planned $360 million investment in power generation.

But he suggested the area between Mannum and Murray Bridge was still in the mix.

"I can assure you that the South Australian government is well aware of the advantages of the Tepko site, as it was very supportive and informed of Investec's Cherokee gas-fired power station that was first proposed for Tepko in 2010," he said.

"The location of a new gas-fired plant will be critically important ... and will therefore be taken into consideration as part of the tender process.

"If the outcome is positive for the Murraylands and Riverland, I look forward to working with the Mid Murray Council to secure maximum benefits for the region and the state."

Of the 31 bids for the construction of a new gas power plant received by the state government in April, at least one nominated Tepko as its preferred site.

Major electricity transmission lines and a Seagas pipeline both run through the area.

As well as creating jobs, construction of a power plant at Tepko would bring money into the local economy via rates income for the Mid Murray council and any payments to local landowners.

More information about the proposed power plant, plus a 100-megawatt battery bank and other spending intended to secure South Australia's power supply, is expected to be revealed in the state budget on Thursday.

The Barossa & Light Herald will participate in the budget lock-up and report details online from 3pm.