As the world’s worst energy crisis in decades is beginning to ease, Origin Energy’s giant gas venture in Queensland’s booming sales revenue has suffered a setback but is still significantly higher than it was a year ago.
Despite a 13% reduction in revenue from the final three months of 2022 due to declining commodity prices, Origin Energy, one of the biggest power and gas companies in Australia, reported revenue from the Australia Pacific LNG (APLNG) venture in the March quarter had been 7% higher than in the same period last year. “APLNG continues to perform well, delivering solid revenue from higher realised oil prices when compared to the same period a year ago,” Origin chief executive Frank Calabria said.
Following the completion of EIG’s transaction with Origin Energy, US energy giant ConocoPhillips has announced plans to take over as upstream operator of Australia Pacific LNG (APLNG) through its Australian subsidiary. ConocoPhillips announced its plans on 27 March stating it has agreed to purchase up to an additional 2.49% shareholding interest in APLNG for $0.5 billion, subject to customary adjustments.
Both the assumption of upstream operatorship and the acquisition of a shareholding is contingent on EIG completing its transaction with Origin. According to the company, EIG’s transaction with Origin and ConocoPhillips’ shareholding acquisition is subject to Australian regulatory approvals and other customary closing conditions. ConocoPhillips (47.5%), Origin Energy (27.5%), and Sinopec (25% each) own 47.5 percent of APLNG. After nearly five years of development and construction, the facility shipped its first LNG cargo in January 2016.
“APLNG has continued to meet its commitment to provide Australian businesses with access to competitively priced gas, recently completing new gas sales to major business customers at the capped price of $12 a gigajoule,” Calabria said.