The Australia Pacific LNG project logged lower revenue during the three-month period ending June 31 when compared to the same quarter last year, according to shareholder Origin Energy.
Origin, which in March agreed to a takeover offer from a consortium consisting of Canada’s Brookfield Asset Management and a unit of US-based energy investor EIG, said in its quarterly report that APLNG revenue reached about A$2.47 billion ($1.66 billion) in the April-June period.
Compared to the second quarter of last year, APLNG revenue decreased 10 percent, while it dropped 11 percent when compared to the prior quarter.
Origin said APLNG revenue for the June quarter was lower than the prior quarter due to lower realized oil prices, although it was 21 percent higher for the financial year.
Origin’s share of APLNG revenue for the quarter was A$611 million, compared with A$697 million in 2022.
The company currently owns a 22.5 percent in the project and is the upstream operator, while China’s Sinopec owns a 25 percent share in APLNG.
US energy giant ConocoPhillips has a 47.5 percent share in the APLNG project and operates the 9 mtpa LNG export facility on Curtis Island near Gladstone.
However, ConocoPhillips revealed plans in March to become upstream operator of APLNG following the closing of EIG’s transaction with Origin, and it has also agreed to purchase up to an additional 2.49 percent shareholding interest in APLNG for $0.5 billion.
Spot LNG cargoes halved
Origin said that APLNG delivered seven spot LNG cargoes delivered in FY2023, down from 15 cargoes in FY2022.
The firm attributed this to the impact of lower production and prioritization of domestic market sales.
In total, APLNG sold 33 cargoes during January-March, down from 35 cargoes in the same quarter last year and the same as in the prior quarter.
During the financial year, APLNG sold 128 cargoes, four less when compared to the same period before.
Australia Pacific LNG’s June quarter realized average LNG price was $12.24 per MMBtu for both contracted and spot cargoes, and average domestic price was A$6.79/GJ.
Production of 175.8 PJ rose 7 percent when compared to the prior quarter and 3 percent when compared to the same period last year.
Origin CEO Frank Calabria said in the statement that “improved production has enabled Australia Pacific LNG to continue to meet the gas needs of export customers and provide a major contribution to the domestic market.”
He added that APLNG delivered a higher cash distribution to Origin for FY2023.