EIG has agreed to acquire a 10% interest in Australia Pacific LNG Pty Ltd. (APLNG) from Origin Energy Ltd. for an equity purchase price of $1.592 billion.
An integrated LNG project with an established liquefaction plant, Australia Pacific LNG is the largest LNG project by liquefaction capacity on Australia’s eastern seaboard and a major supplier of LNG to Asia and gas to Australia’s domestic market, EIG said in a release Oct. 25.
The project, in Gladstone, Queensland, holds nameplate capacity of 9 million tonnes/year and holds a large acreage position spanning the Surat and Bowen basins, providing long-life reserves, the institutional investor continued.
Australia Pacific LNG is operated by ConocoPhillips (downstream operator) and Origin Energy (upstream operator) and maintains long-dated LNG contracts with Sinopec and Kansai Electric.
As part of the transaction, EIG will have the right to nominate one member to Australia Pacific LNG’s board of directors.
The transaction has received approval from the Australian Foreign Investment Review Board and is subject to the waiving of pre-emptive rights by ConocoPhillips and Sinopec, as well as other customary completion conditions.