ORIGIN'S BassGas cost up $100m to $460m, completion due September.
The cost blowout will add pressure to the integrated energy company's balance sheet as it starts construction of a $19.5 billion gas-export joint venture, APLNG, in Queensland.
BassGas produces natural gas, condensate and liquid petroleum gas sourced from the Yolla field situated 147 kilometers off the coast of Victoria. It went live in 2006 with the intention of meeting around 10 percent of Victoria's gas demand for 15 years, The Australian reports.
In 2009, Origin announced an upgrade to the Yolla platform to install extra compression capacity and on-platform accommodation for workers to boost efficiency and extend the life of the project.
Analysts at Macquarie said the latest delay at BassGas "will do little to settle the market's existing concern over the development of risks" associated with the APLNG gas-export venture, despite its limited relevance to the project. Origin earlier experienced delays with the original BassGas development, the Otway gas project and the Mortlake power station.
Weekly Times Now
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