ConocoPhillips to become upstream operator of Australia Pacific LNG
(WO) – ConocoPhillips announced that it plans to become upstream operator of Australia Pacific LNG (APLNG) following the closing of EIG’s transaction with Origin Energy. ConocoPhillips has agreed to purchase up to an additional 2.49% shareholding interest in APLNG for $0.5 billion. ConocoPhillips currently holds a 47.5% APLNG shareholding interest and will own up to 49.99% of APLNG upon closing.
“Origin pioneered the development of coal seam gas into LNG and has contributed to APLNG’s status as a safe and dependable LNG supplier. We look forward to leveraging our global upstream expertise to further enhance APLNG as a world-class integrated LNG operation,” said Andy O’Brien, Senior Vice President, Global Operations. “APLNG is currently the largest supplier of natural gas to Australia’s East Coast domestic market, meeting between 20-30% of its total demand. It will continue supplying customers in China and Japan with reliable energy that is lower in GHG intensity than other fossil fuel alternatives, and thus help meet energy transition pathway demand for years to come.”
ConocoPhillips’ full-year 2022 production from APLNG was approximately 136 thousand boed. The transaction is expected to close in early 2024. The effective date of the transaction will be July 1, 2022.