Australia Pacific LNG Starts Train 2

Origin Energy's Australia Pacific LNG (APLNG) has produced the maiden LNG cargo from the second of its two 4.5mn mt/yr production trains.

Managing director Grant King called it a defining moment in the project's eight-year journey from establishment to ongoing exports.

“Australia Pacific LNG recently completed the 120-day operational test period for its first production train. This represents a major milestone in satisfying project financing completion agreements for Train 1, which is expected to occur by the end of calendar 2016,” King said October 10. “Australia Pacific LNG’s transition from development to production will see Origin benefit significantly from its investment in the project through earnings and returns from FY 2018 and beyond, based on the current forward curve for oil.”

APLNG is a joint venture comprising Origin, US ConocoPhillips and Sinopec. It is the largest producer of natural gas in eastern Australia. The coalbed methane-LNG project was commissioned earlier this year. Most of the LNG sales have been under long term contracts with Sinopec and Japan's Kansai, although the former has been seeking a reduction in the price.

APLNG has shipped 47 LNG cargoes to customers in Asia and further afield since exports from its first train commenced in January this year, King said.

Origin's Integrated gas head David Baldwin said: “With the commencement of Train 2 operations, approximately 200TJ/d of equity gas that was previously directed to the [neighbouring, Shell-operated LNG plant] QGC sales contract will become available to Australia Pacific LNG.”

Shardul Sharma