Origin Sells Ironbark Project to APLNG

Australia’s Origin Energy agreed to sell its Ironbark project to Australia Pacific LNG (APLNG) for A$231mn ($164mn), it said February 19.

Ironbark is in Queensland’s Surat Basin. In August 2018, Origin announced that it had entered first stage of front end engineering design (Feed) while also assessing alternate strategic options for the asset. Origin owns 37.5% of APLNG, along with ConocoPhillips (37.5%) and Sinopec (25%). 

Origin CEO Frank Calabria said, “The sale represents the best way for Origin to maximise value from Ironbark. Australia Pacific LNG is able to realise additional value from the asset by utilising its existing nearby gas and water processing infrastructure to efficiently bring the gas to market. Origin will derive value from the development of the Ironbark asset through its investment in Australia Pacific LNG.”

In its role as upstream operator for Australia Pacific LNG, Origin will be responsible for the development of Ironbark, it said. The sale is subject to national anti-trust and foreign investment approvals.