APLNG revenue down 10% in April-June on lower LNG prices

Australia Pacific LNG (APLNG) project revenue in the April-June quarter (Q4) came in at A$2.47bn ($1.66bn), down 10% year/year on LNG prices, Origin Energy, one of the partners in the project, announced on August 1. The revenue was down 11% quarter/quarter.

APLNG’s average LNG price in Q4 was $12.24/mn Btu, down 14% yr/yr and 16% q/q. APLNG, a joint venture comprising Origin, ConocoPhillips and China's Sinopec, is Australia’s largest producer of coalbed methane (CBM) and supplies gas to Queensland’s domestic gas market, while also processing CBM into LNG for exports.

Origin’s revenue from its stake in APLNG dropped to A$611mn in Q4 from A$697mn a year earlier and A$710mn in Q3.

A consortium of Brookfield Asset Management and MidOcean Energy, a unit of EIG, recently signed a binding scheme implementation deed to acquire Origin for an enterprise value of A$18.7bn.

According to the deal, Brookfield would acquire Origin’s energy markets business and MidOcean would acquire the integrated gas business including a 27.5% interest in Queensland-based APLNG.

ConocoPhillips has announced its plans to become the upstream operator of APLNG following the closing of EIG’s transaction with Origin.