First LNG cargo departs from APLNG

11th January 2016 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The $24.7-billion Australia Pacific liquefied natural gas (APLNG) project, offshore Queensland, has shipped its first LNG product.

The Methane Spirit departed Curtis Island, bound for customers in Asia, on the weekend.

ASX-listed Origin Energy MD Grant King said on Monday that the shipment was a landmark moment in the history of Origin.

“Origin is delighted that the first LNG cargo has departed from APLNG, carrying natural gas for delivery in Asia.

“These are incredibly large, complex projects and exporting the first cargo is a tremendous achievement for the Origin team that led delivery of the upstream operations, and the ConocoPhillips team that led delivery of the downstream operations,” said King.

The Australian Petroleum Production & Exploration Association has welcomed the first shipment from APLNG, with CEO Malcolm Roberts saying it marked the arrival of Australia as an LNG global superpower.

“This visionary infrastructure project, which created 15 000 jobs at its peak, is the third completed in Queensland in 12 months to meet Asia’s growing demand for clean and reliable energy,” Roberts added.

“The growth dividend for Queensland is huge and long term. Over the next four years alone as LNG exports ramp up, an estimated A$1.2-billion will flow in royalty payments for spending on public services like schools and hospitals.”

The Queensland Resources Council had also welcomed the first shipment, with CEO Michael Roche adding that it signified a vital and growing export pillar for the Queensland economy.

The APLGN project comprises two processing trains, each with a 4.5-million-tonne-a-year nameplate production capacity.

Some 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.