Origin has said APLNG needs oil prices of $38-42/bbl before it yields distributions above operating and financing costs. Brent oil prices closed at $33.55/bbl on Jan. 8.
In December 2015, Origin attempted to insulate itself from plunging oil prices by hedging some of APLNG’s output at $40/bbl. It also sold forward some cargoes at a fixed price to an undisclosed buyer.
On a broader front, Australia shipped 25 million tonnes of LNG in 2014-15 earning $16.9 billion (Aus.) in export revenue.
By 2019-20 when all seven LNG projects developed in recent years—QCLNG, GLNG, APLNG, Gorgon-Jansz, Wheatstone, Ichthys, and Prelude—are fully operational, there will be a projected combined Australian export volume of about 76 million tpy.