Photo by: Bloomberg
PERTH (miningweekly.com) – Energy major Origin Energy will sell its Darling Downs pipeline network to Jemena Gas Pipeline Holdings for A$392-million.
The Darling Downs pipeline network transports gas to Origin’s Darling Downs power station, the Australia Pacific liquefied natural gas project, and domestic markets.
Origin told shareholders on Friday that under the terms of the sale agreement, the company has secured gas transportation services on the pipeline network for periods ranging between 10 and 30 years.
The transaction with Jemena lifted Origin’s asset divestment programme, launched in September 2015, to A$1-billion, which is higher than the originally targeted A$800-million.
Origin CEO Frank Calabria said that the company continues to make good progress on divesting Origin’s conventional upstream business, Lattice Energy, in 2017.
The Darling Downs pipeline network sale is expected to settle by the end of June this year.