Origin says loaded LNG vessel at APLNG facility loses power

Australia's Origin Energy on November 28 announced that a loaded LNG vessel docked at the Australia Pacific LNG (APLNG) facility on Curtis Island has lost power and is currently unable to leave the terminal.

The company said in a statement that downstream operator ConocoPhillips is working with all parties concerned, including the relevant maritime regulator and port authority, to resolve the situation.

Origin, as the upstream operator, has commenced turning down production to reduce the flow of gas to the LNG facility. In addition, it is taking steps to bank its non-operated portfolio production and execute additional domestic gas sales.

Only one LNG vessel is able to dock at the LNG facility at a time. As a result, no other cargo can be loaded until the situation is resolved, Origin said.

Two cargoes have already been deferred out of the FY2024 delivery schedule. It is expected that more LNG cargoes will be deferred, with APLNG ordinarily loading an LNG vessel for export approximately every three days.

"The total number of cargoes to be deferred will depend on the timeframe for resolution. There is no impact to domestic gas customers," the company said.

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.

The Australian government on November 27 announced the successful negotiation of two new gas supply commitments with APLNG and Senex.