Name of the Project
Australia Pacific liquefied natural gas (APLNG) project.

Location
Australia.

Client
APLNG, a 50:50 joint venture between Origin Energy 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.

About 8.6-million tonnes a year of LNG production from APLNG had been committed under long-term take-or-pay contracts with Sinopec, in China, and Kansai, in Japan.

Jobs to be Created
Not stated.

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

Duration
The start of shipments from APLNG started in January 2016.

Latest Developments
The second 4.5-million-tonne-a-year train at the APLNG project has delivered its first LNG cargo.

APLNG recently completed the 120-day operational test period for its first production train. This represents a major milestone in satisfying project financing completion agreements for Train 1, which is expected to occur by the end of calendar 2016.

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. This allows for 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.