APLNG Cost Rises by 7%

Origin Energy Limited has said that cost of Australia Pacific LNG is expected to be $24.7 billion, a rise of 7% from previous estimate.

In the review of the CSG to LNG project, Origin said that Train 1 is on track to be completed on or ahead of schedule, with the first LNG cargo expected in mid-2015. Train 2 is expected to be completed at least three months earlier than the FID schedule, and start up is now expected in the fourth quarter of calendar 2015.

Origin Managing Director Grant King said, "The increase in cost reflects increased certainty around well and gathering locations for gas for Train 2, enabling more accurate cost estimates, changes to CSG water management scope to align with revised government policy, cost increases for third party LNG projects in which Australia Pacific LNG has an interest, and an increased allowance for project contingency."

Australia Pacific LNG continues to make significant progress on the development of its CSG to LNG project. At the end of December 2012, the upstream component of the project was 29 per cent complete and the downstream component was 31 per cent complete.