Name and Location
Australia Pacific LNG (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 ConocPhillips 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 tons 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 project is 30% complete.

A review of the APLNG project has concluded that Train 1 is on track to be completed on or ahead of schedule, with first the LNG cargo expected by mid-2015. Train 2 is expected to be completed at least three months earlier than scheduled, with start-up expected in the fourth quarter of 2015.

Meanwhile, the first four LNG modules for the APLNG project were unloaded
on Curtis Island, following their arrival at Gladstone harbour in April.

These modules and others will be used as the foundation structure for the LNG processing trains and supporting infrastructure. A total of 69 modules will arrive from the module construction yard in Batam, Indonesia, over the next 18 months.

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.