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ENERGY & UTILITIES | Natural Gas Utilities
aplng.com.au

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About Australia Pacific LNG

Australia Pacific LNG is producer of coal seam gas (CSG), supplying Queensland’s domestic gas market, as well as processing CSG into liquefied natural gas.It is located in West Perth, Western Australia.

Australia Pacific LNG Headquarter Location

53 Ord Street 4th Floor,

West Perth, Western Australia, 6005,

Australia

Latest Australia Pacific LNG News

Origin Energy hit by weaker prices

Jan 29, 2021

Jan 29, 2021 – 10.12am Share Origin Energy failed to capitalise on the strengthening of LNG prices in the back end of 2020 but its sales from the Australia Pacific LNG venture still edged up in the December quarter thanks to record production. Weaker prices saw Origin’s net cash returns from its 37.5 per cent stake in APLNG slump 49 per cent to $265 million in the first half of 2020-21 compared with a year earlier. Average electricity and domestic gas spot prices also sank in the December quarter on softer demand because of COVID-19 and mild weather. Gas, LNG and electricity prices all softened for Origin in the December quarter. Michelle Lowings JPMorgan analyst Mark Busuttil still described the quarter as “strong” for Origin, noting the record level of operations at APLNG. He said output, sales volumes and revenues were all higher than his estimates, despite realised prices at APLNG falling slightly short. The average price Origin got for its LNG in the quarter slid 10 per cent from the September quarter to $US5.20 per million British thermal units. That stands in stark contrast to rivals Woodside Petroleum, Santos and Oil Search which all saw a lift in average LNG prices in the December quarter, by as much as 41 per cent for Oil Search. Related Quotes Advertisement But in the case of Origin, the gains in spot LNG prices in late 2020 were outweighed by lower prices for contract LNG, which are linked to crude oil prices with a typical lag across the industry of three to six months. Origin’s average price for LNG was still higher than Woodside’s and roughly in line with Santos’. “Strong gas production at Australia Pacific LNG for the quarter eclipsed the previous record, which combined with higher prices on short term domestic and LNG spot sales offset the lagged impact of lower oil prices under long term LNG contracts,” chief executive Frank Calabria said. Revenues from Origin’s share of APLNG rose 6 per cent in the December quarter from the September period to $398 million, but first-half revenues dived 45 per cent from a year earlier to $771.9 million. Origin’s energy markets business posted softer quarterly sales in both electricity and gas, with electricity slipping 8 per cent to 8 terawatt-hours while gas slumped 19 per cent to 58 petajoules. The declines, which were reported only in the volume of energy sold rather than in dollars, were milder on a half-year basis, down 2 per cent and 3 per cent, respectively. Mr Calabria said that although electricity demand in the retail sector has risen by 1 per cent in the year to date as people spend more time at home because of COVID-19, business sales have fallen, particularly in Victoria. Mild summer weather because of the La Niña weather system also hit demand in the December quarter. Origin’s realised average LNG price in Australian dollar terms of $6.70 a gigajoule was still more than its average domestic gas price of $4.40/GJ. The average price it got for its oil dropped to $US34 a barrel from $US43 a barrel in the September quarter. In Australian dollar terms, the average sank to $46 a barrel from $60, and well below the $100 a barrel received in the December 2019 quarter. Angela Macdonald-Smith writes on the resources industry with a focus on energy, including gas, oil, electricity and renewables. Connect with Angela on Twitter . Email Angela at amacdonald-smith@afr.com Save

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