PERTH (miningweekly.com) – ASX-listed Origin Energy has reported a 2% increase in production from the Australia Pacific Liquefied Natural Gas (APLNG) operation in the three months to December, with production reaching 177.9 PJ.
Sales volumes from APLNG were up 1% on the September quarter, to 169.2 PJ, generating revenues of A$2.2-billion.
Origin on Monday said that APLNG commodity revenue increased 91% on the prior year and 33% on the prior quarter, primarily driven by higher realised oil prices and spot LNG prices.
Three JKM-linked spot cargoes were delivered in the December quarter. North Asian LNG market prices delivered in the quarter averaged $28/million British thermal units. Another five JKM-linked spot cargoes sold for delivery in the March quarter.
“APLNG has continued its strong performance and was able to benefit from the substantial increase in oil and spot LNG prices and favourable currency movements, helping to drive a large increase in revenue compared to the prior year,” said Origin CEO Frank Calabria.
“Early completion of planned maintenance boosted production and sales in the December quarter, and also allowed APLNG to capitalise on a buoyant spot LNG market, selling three JKM-linked spot cargoes with a further five sold for delivery in the coming months.
“In the domestic market, an average price of close to $6/GJ demonstrates APLNG continues to ensure competitively priced supply for local customers,” Calabria said.
Origin recently announced ConocoPhillips had exercised its pre-emption rights in relation to Origin’s sale of 10% of its shareholding in APLNG, subject to Foreign Investment Review Board approval.
Origin in October struck a $2.12-billion agreement with global energy investor EIG to sell a 10% stake in the APLNG project, with the company saying at the time that the sale would allow Origin to crystalise some of the significant value created in APLNG, while retaining upside to further value creation through a continuing substantial shareholding.
Origin remains upstream operator and will retain a 27.5% interest.