Origin’s sales revenue drops, APLNG on track

October 30, 2014

Origin Energy’s third quarter sales revenue was at $251.1 million, down by 11% compared to the previous quarter and 18% compared to the same period last year.

The company’s production of 34.9 PJe in the September quarter was in line with the June quarter but down 7% on the same period in 2013.

Origin Chief Executive Officer Upstream,Paul Zealand said, “Origin’s production volumes during the quarter reflected the anticipated lower call on production. In order to benefit from the availability of additional LNG ramp gas, Origin will maintain a degree of flexibility through its nominations into the 2015 financial year.”

Australia Pacific LNG project

The Upstream component of the project is 85% complete at 30 September 2014. Australia Pacific LNG drilled 166 development wells, bringing the total number of development wells drilled to 985 at 30 September 2014. Approximately 70 wells per month are now being commissioned on an ongoing basis.

Origin Chief Executive Officer LNG, David Baldwin said, “Pleasingly, the project is on track for first LNG in mid-2015 with full production expected from both trains by the end of FY2016.”

Reedy Creek Train 1 and 2, Orana Train 1 and 2 and Condabri South Train 2 Gas Processing Facilities achieved mechanical completion. Gathering installation activities continued and a total of 583 diameter kilometres of pipe have now been installed. Pipeline commissioning continues to support gas facility commissioning with preparations to pack the pipeline to Curtis Island underway. Water treatment facilities at Condabri are now operational and importantly local farmers are receiving processed water to irrigate their land.

The Downstream component is 82% complete at 30 September 2014. All modules for Train 1 are set and during the quarter the Train 1 Inlet Air Chiller was installed at Curtis Island. All remaining Train 2 modules are expected to be set prior to the end of the 2014 calendar year. LNG Tanks A and B were also hydrostatically tested. Commissioning and Start-Up (CSU) activities are ramping up with the first systems turned over from construction to the CSU team.

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LNG World News Staff; Image: Origin