Electricity and gas supplier, Origin Energy reported a significant increase in revenue from its Asia Pacific LNG project in Queensland for the September quarter as global supply pressures have sent commodity prices soaring.
APLNG commodity revenue increased 25 per cent on the prior quarter and 69 per cent on the corresponding 2020 quarter, primarily driven by higher realised oil prices, taking dales revenue from the project to $633.7 million during the three months to September 30. Production and sales volume was stable compared to the June quarter despite a planned downstream shutdown during the period.
In its Energy markets business, Electricity sales volumes were up 3 per cent compared with the corresponding 2020 quarter thanks to higher residential demand and net business customer wins, more than offsetting COVID impacts. Gas volumes declined 7 per cent, primarily due to the expiration of contracts.
Origin said APLNG fetched an average domestic gas price of $6.79 a gigajoule for the quarter, while LNG prices were significantly higher at $US9.09 per million British thermal units.
Planned downstream maintenance at Australia Pacific LNG was completed ahead of what is expected to be a busy northern hemisphere winter, and with the plant back at full capacity three JKM-linked spot cargoes were sold into the tight Asian LNG market for delivery in the December quarter. Spot prices have recently touched record highs above $US50 per million British thermal units and remain elevated at above $US30.
The company also announced the sale of 10 per cent of APLNG to EIG for $2.12 billion. Origin CEO Frank Calabria “The announcement to sell a 10 per cent interest in Australia Pacific LNG represents an opportunity for Origin to crystalise some of the significant value we have created in this world-class asset, while retaining a substantial shareholding and our role as upstream operator."