Origin divests Queensland natural gas pipeline

May 19, 2017
Origin Energy Ltd., Sydney, has completed its program of shedding noncore assets with the sale of the Darling Downs natural gas pipeline in southeast Queensland to Jemena Gas Pipelines Holdings for $392 million (Aus.).

Origin Energy Ltd., Sydney, has completed its program of shedding noncore assets with the sale of the Darling Downs natural gas pipeline in southeast Queensland to Jemena Gas Pipelines Holdings for $392 million (Aus.).

This 292-km line transports gas to Origin’s Darling Downs electric power station as well as to the Australia Pacific LNG project on Curtis Island near Gladstone and to the domestic market via the Wallumbilla hub in central Queensland.

As part of the deal Origin has secured gas transport services on the line for periods ranging 10-30 years.

The sale is expected to be completed by the end of June.

Jemena, which is backed by Chinese interests, owns a portfolio of energy and water transportation assets along the east coast of Australia. It has also been selected by the Northern Territory government to build and operate an $800-million (Aus.) pipeline to transport gas from the north to Mount Isa in Queensland.

The Darling Downs pipeline deal increases Origin’s proceeds from its asset sale program to $1 billion (Aus.).