Origin Energy hit by lower APLNG revenue

Origin Energy saw a lower quarterly revenue from the Australia Pacific LNG project but it managed to renegotiate a crucial supply deal with China’s Sinopec.

Origin Energy, which holds a 37.5 percent stake in the APLNG project, said Thursday the first price review under Sinopec’s long-term contract was completed with no change to the contract price.

APLNG is a joint venture between Origin, ConocoPhillips, and Sinopec.

Production at APLNG rose 6 percent year-on-year to 66.8 petajoules during January-March, but dropped slightly below the December quarter’s record level.

Origin’s revenue from APLNG came in at A$628.5 million ($411.60 million) for the January-March period, down from A$763.9 million a year earlier.

Revenue dropped due to lower contracted LNG sales.

APLNG’s effective oil price in the March quarter was $65 per barrel, down from $69/bbl in the Dec-19 quarter and $78/bbl in the Mar-19 quarter.

Both JCC and spot LNG prices softened in the March quarter as a result of demand weakness linked to the Covid-19 coronavirus pandemic.

Chief executive Frank Calabria said “in energy markets, we are already seeing an initial impact from the pandemic on electricity demand.”

This along with “milder weather and lower customer numbers and usage, contributed to lower volumes compared to this time last year,” he said.

Most Popular

Yang Ming books LNG-powered containerships in South Korea

Taiwan’s Yang Ming Marine Transport has decided to order LNG dual-fuel container vessels from South Korea's Hanwha Ocean as part of its ongoing fleet optimization plan.

Sabah to take stake in Petronas’ third FLNG

SMJ Energy, owned by the Sabah government, has signed a heads of agreement with Malaysian energy giant Petronas to take a 25 percent stake in the latter's third floating LNG production unit.

Japan’s LNG imports drop in June

Japan’s liquefied natural gas (LNG) imports dropped by 2.8 percent in June compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.

More News Like This

Monadelphous scores new LNG contracts

Australian engineering firm Monadelphous has secured contracts for Shell's Crux natural gas project offshore Western Australia and the Australia Pacific LNG project in Queensland.

Gladstone LNG exports flat in June

Liquefied natural gas (LNG) exports from the Gladstone port in Australia’s Queensland were almost flat in June compared to the same month last year, according to the monthly data by Gladstone Ports Corporation.

Gladstone LNG exports drop in May

Liquefied natural gas (LNG) exports from the Gladstone port in Australia’s Queensland dropped 4.5 percent year-on-year in May due to lower volumes going to China, according to the monthly data by Gladstone Ports Corporation.

China’s Sinopec secures price cut for APLNG contract

China’s state-controlled energy giant Sinopec has secured a lower price for its long-term liquefied natural gas supply deal with Australia Pacific LNG following a price review, according to APLNG shareholder Origin Energy.