Conoco eyes greater stake in Australia Pacific LNG
US major ConocoPhillips said December 8 it was exercising an option to take an additional 10% interest in Australia Pacific LNG for as much as $1.65bn.
ConocoPhillips Australia currently holds a 37.5% stake in Australia Pacific LNG (APLNG) alongside Origin Energy, with 37.5%, and Sinopec, with 25%. The US major said it notified Origin that it was exercising its preemption right to take 10% from Origin for up to $1.65bn.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
In August, APLNG said it was in a position to offer more volumes to the tight market. By December, Australian LNG potential had been curbed by recent outages at major facilities such as the offshore Prelude floating LNG unit and the Gorgon facility.
APLNG’s operations include coal-seam natural gas production, a 530-km transmission pipeline and a multi-train LNG facility on Curtis Island.
CEO Ryan Lance said funds for the acquisition would come from the company’s December 8 sale of some of its Indonesian assets for $1.35bn.
“Through the achievements of APLNG and its other shareholders, Origin Energy and Sinopec, APLNG has become a world-class integrated LNG operation,” Lance said. “It will continue supplying customers in the Asia-Pacific region with reliable energy that is lower in greenhouse gas intensity than many of the alternatives, and thus help meet energy transition pathway demand for years to come.”
Other APLNG shareholders have preemption rights that Conoco needs to consider as well. Subject to federal approval, however, the company expects the transaction to close early next year.