Name and Location
Australia Pacific liquefied natural gas (APLNG) project.

Client
APLNG, which is a 50:50 joint venture between Origin and ConocoPhillips. Sinopec has agreed to subscribe for a 15% equity interest in APLNG.

On completion of the transaction, the ownership interest of Origin and ConocoPhillips will be reduced to 42.5%.

Project Description
The project will consist of the further development of APLNG’s gasfields in the Surat and Bowen basins, in south-western and central Queensland respectively; a gas pipeline from the gasfields to a liquefied natural gas (LNG) facility, in Gladstone, Queensland; and an LNG facility on Curtis Island, in Gladstone, the first two trains of which will have a processing capacity of up to nine-million tonnes a year.

Value
The cost of the project is estimated at $24.7-billion.

Duration
First LNG production is expected in 2015.

Latest Developments
The APLNG project has been connected to the Queensland power grid, with the final connection to provider Powerlink’s transmission network occurring this week.

The new high-voltage electricity infrastructure is powering three APLNG gas-processing facilities delivering coal seam gas into the 530 km pipeline to its LNG facility on Curtis Island.

It is estimated that electricity demand in the North West Surat will increase from about 100 MW to 600 MW before 2016, more than peak demand for the whole Sunshine Coast and surrounding hinterland.

To meet this need, Powerlink has entered into commercial agreements with APLNG and Santos Gladstone LNG to deliver 200 km of transmission line and seven substations, with all costs paid for by the customers requesting the connections.

First LNG exports were scheduled to start in the second half of this year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
A review of the APLNG project has increased the estimated price from $23-billion to $24.7-billion.

According to Origin MD Grant Kind, the increase in costs reflects increased certainty around well and gathering locations for gas for Train 2, enabling more accurate cost estimates, changes to the coal seam gas water management scope to align with revised government policy, cost increases for third-party LNG projects in which APLNG has an interest and an increased allowance for project contingency.

Contact Details for Project Information
APLNG external affairs manager Fiona McLeod, tel +61 7 3021 3325.