Origin Energy Limited (Origin) today announced the signing of a second major agreement to sell gas to GLNG partners (GLNG), providing a pathway for Origin to monetise its gas portfolio in line with international oil-linked pricing.
Under the terms of the agreement, Origin will supply GLNG with at least 100 petajoules (PJ) of gas at Wallumbilla over a period of five years, commencing on 1 January 2016.
The agreement provides Origin an option to supply additional volumes of up to 94 PJ of gas to GLNG, and preserves flexibility to call back certain volumes of gas into Origin's portfolio during periods of high east coast gas or electricity market demand.
Origin Chief Executive Officer Energy Markets, Mr Frank Calabria said, "The signing of Origin's second major agreement to sell gas to GLNG demonstrates the strength and value of the Company's east coast gas portfolio, including extensive transport capabilities.
"The agreement stands to deliver significant value, by allowing Origin to monetise its gas resources in line with international oil-linked pricing.
"In addition, Origin continues to invest in a range of organic opportunities to grow its gas production portfolio, including the Halladale Black Watch conventional gas project in Victoria and the Ironbark CSG project in Queensland," Mr Calabria said.
The agreement is between Origin subsidiaries, Origin Energy Retail Ltd, Origin Energy Power Ltd and Origin Energy Electricity Ltd, and Santos GLNG Pty Ltd, PAPL (Downstream) Pty Ltd, Total GLNG Australia and KGLNG Liquefaction Pty Ltd.
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About Origin Energy
Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the company has more than 6,000 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has the country's largest and one of the most flexible generation portfolios with 6,010 MW of capacity. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest CSG to LNG projects based on Australia's largest 2P CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.