Australia Pacific LNG Runs 10% Above Nameplate Capacity During Operational Test

The Australia Pacific LNG terminal at the Port of Gladstone in Queensland has completed its 90-day operational test, during which time it produced, on average, more than 10% above nameplate capacity, Origin Energy said July 28.

“This outstanding result underscores the quality of Australia Pacific LNG’s resources and facilities, and is a credit to our joint venture partners and in particular, all those people who work tirelessly across the downstream and upstream operations,” Origin CEO, Frank Calabria, said.

The three-month-long procedure is part of the 9mn metric tons/year nameplate capacity project’s finance completion tests, which Origin said it expects to have satisfied during the July-September quarter.

When the formal certifications are received, the remaining $3.4bn of shareholder guarantees relating to Australia Pacific LNG’s $8.5bn project finance facility will be formally released.

The operational performance result comes amid concerns that the east coast of Australia could face gas supply issues in the next couple of years. The Australia Government is currently in the process of deciding whether it will consider 2018 a “gas shortfall year” and use new powers to restrict the country’s LNG exports.

The export controls would focus on operations which are not net contributors to the domestic market, and APLNG is not expected to be targeted.

“We’re proud of Australia Pacific LNG’s contribution as a major supplier of natural gas to Australia’s east coast, meeting approximately 20% of total annual demand,” Calabria said.

Origin has a 37.5% stake in the APLNG joint venture, along with ConocoPhillips (37.5%) and Sinopec (25%). 

Nathan Richardson