LNG

Origin Energy, a stakeholder in the Australia Pacific LNG plant in Queensland, and Gladstone LNG operator Santos, said they had both heeded calls to help Australian industry in the supply of gas and have signed a joint deal with a major Sydney company.

Origin Energy said it aimed to complete its sale of the pipeline network that supplies the Australia Pacific LNG plant and the Queensland domestic gas network for just over US$290 million by June 30.

Santos, the liquefied natural gas stakeholder in three Asia-Pacific liquefaction and export joint ventures, has become the second Australian company to announce a break-up involving the LNG assets to continue to weather the global slump in energy markets and reduce debt.

Origin Energy, the major shareholder in the Australia Pacific LNG plant in Queensland, is launching a major corporate overhaul that includes floating off its conventional natural gas assets as a separate company while keeping APLNG and related assets.

Origin Energy Chief Executive Frank Calabria has made executive changes after taking over from Grant King as head of the company, the upstream feed-gas supplier to the Australia Pacific LNG project at the port of  Gladstone in Queensland.

One of Australia’s most respected energy company chief executives, Grant King of Australia Pacific LNG joint venture partner Origin Energy, said the project in the state of Queensland probably over-stretched the company’s resources, though was now performing better than expected.

Origin Energy, the upstream operator of the Australia Pacific LNG export project, said it had successfully extended a $4.5 billion bank debt facility until 2021, to “improve financial resilience” through the energy industry downturn.