Friday, April 6

Origin ready to shed more of its APLNG project

ORIGIN Energy is considering further sales of its equity in the Australia Pacific Liquefied Natural Gas project in Queensland to help pay for its expansion.

The energy firm last month left the door open for further reductions in its stake in APLNG after selling down its equity to China's Sinopec, leaving Origin with a 37.5 per cent stake, from 42 per cent previously.

Origin yesterday said funding choices for a second processing train, including additional equity raisings, would depend on factors such as the cost of project finance and the timing of a decision to proceed with the second phase. The two-phase project, a joint venture with US energy giant ConocoPhillips and Sinopec, is expected to cost $US20 billion ($19.18bn). This includes $US14bn for the first processing train.

Origin said the financing facilities it had in place meant there was no intention to raise additional equity for train one and other committed projects.


The Australian

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