Origin, ConocoPhillips finalize CSM-fed LNG venture

Origin Energy has finalized its deal with ConocoPhillips to form a coalseam methane-fed LNG joint venture to be called Australia Pacific LNG.

Oct. 30, 2008

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Oct. 30 -- Origin Energy Ltd., Sydney, has finalized its deal with ConocoPhillips to form a coalseam methane (CSM)-fed LNG joint venture to be called Australia Pacific LNG. ConocoPhillips has submitted an upfront payment of $5 billion.

The proposal is to develop Origin's CSM resources in the Surat and Bowen basins in Queensland to supply a proposed 14 million tonnes/year LNG plant at Gladstone on the central east coast of Queensland.

First investment decision for Train 1 is due by the end of 2010, and first LNG production is scheduled for 2014.

Through the JV, Origin will become the largest CSM-LNG producer in Australia.

Origin says Australia Pacific LNG brings together Origin's 10 and ConocoPhillips' 25 years of CSM experience. Through ConocoPhillips, the new JV has access to 40 years of experience in operating and developing LNG facilities.