Origin reports lower APLNG revenue

The Australia Pacific LNG project logged lower revenue during the three-month period ending September 30 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$2.34 billion ($1.49 billion) in the July-September period.

Compared to the third quarter of last year, APLNG revenue decreased 15 percent, while it dropped 5 percent when compared to the prior quarter.

Origin said APLNG revenue was 15 percent lower when compared with the same quarter last year, due to a combination of lower realized oil prices, and lower short-term domestic contract volumes and prices.

Compared to the prior quarter, APLNG revenue decreased due to seasonal timing of LNG cargoes and lower realized average LNG prices, it said.

Origin’s share of APLNG revenue for the quarter was A$553 million, compared with A$611 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.

More LNG cargoes sold

Origin said that APLNG delivered two spot LNG cargoes in the first quarter of FY2024, while the plant did not delivery any spot cargoes in the same period last year. APLNG delivered seven spot LNG cargoes in FY2023, down from 15 cargoes in FY2022.

In total, APLNG sold 31 cargoes during July-September, a rise from 28 cargoes in the same quarter last year but a drop compared to 33 cargoes in the prior quarter.

Australia Pacific LNG’s September quarter realized average LNG price was $11.62/mmbtu (contracted and spot) and average domestic price was A$8.14/GJ.

Production of 174.9 PJ rose 4 percent when compared to the same quarter last year but it dropped 1 percent compared to the prior quarter.

Origin CEO Frank Calabria said in the statement that APLNG production was higher than the comparable quarter last year as the “teams continued to focus on reducing the backlog of offline wells and production optimization following the wet weather impacts in previous periods.”

He said this improved production allowing APLNG to boost sales volumes to the domestic market and deliver A$2.34 billion in revenue for the quarter.

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