Development of APLNG Project is 88% Complete, First LNG Seen in Mid-2015

Origin Energy Limited (Origin) reported Friday that the Australia Pacific LNG project in Queensland, Australia is 88 percent complete and on track to deliver first liquefied natural gas (LNG) in mid-2015. The update was provided as part of the release of the Company’s Quarterly Production Report for its Exploration and Production business for the quarter to Dec. 31, 2014.

Origin CEO LNG, David Baldwin said, "We continue to make significant progress in the delivery of the Australia Pacific LNG project.

"The Upstream component of the project is 90 per cent complete, with 1,019 development wells drilled and 666 wells commissioned, while the Downstream component is 86 percent complete and the final Train 2 module has been set on its permanent foundations.

"The Australia Pacific LNG project remains on track for first LNG in mid-2015," Baldwin said.

Origin reported production for the quarter to Dec. 31, 2014 of 33.4 petajoules equivalent (PJe) and sales revenue of $183.3 million (AUD 235.6 million).

Production was 4 percent lower than the previous quarter, primarily attributable to lower production at Otway due to maintenance activities and lower customer nominations by Origin, a planned maintenance shut down at BassGas, as well as lower seasonal demand at Kupe, partly offset by higher production at Australia Pacific LNG. Sales revenue decreased 6 percent compared to the previous quarter, reflecting lower production and a lower average commodity price, partly offset by the timing of product liftings.

Origin reported production for the six months to Dec. 31, 2014 of 68.3 PJe and sales revenue of $378.6 million (AUD 486.7 million).

As foreshadowed, production decreased when compared to the six months to Dec. 31, 2013. Origin reduced its call on production from its Upstream business in order to take advantage of cheaper ramp gas available from Queensland’s CSG-LNG projects. Revenue decreased compared to the six months to Dec. 31, 2013 primarily reflecting lower production and reduced third party prices and volumes.

During the quarter, Origin also announced that the Speculant-1 exploration well had encountered potentially commercial quantities of gas in primary target Waarre Formation reservoirs in the Otway Basin, offshore Victoria. Origin has a long history of gas production in Victoria, and continues to evaluate the development options for the Speculant-1 resource, to help position its gas portfolio to meet future growth in demand for gas.


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