Australia's Origin Energy signs gas deal with GLNG | Irish Sun

Australia's Origin Energy signs gas deal with GLNG

Irish Sun Wednesday 2nd May, 2012

• Origin Energy to supply gas from its Queensland portfolio from 2015

• GLNG is a joint venture between Santos, PETRONAS, Total and KOGAS

• Origin is also building a gas export project with ConocoPhillips and China's Sinopec

PERTH - Origin Energy has signed a deal to sell its liquefied natural gas (LNG) competitor Santos 365 petajoules (PJ) of coal-seam gas for a decade from its Queensland portfolio at international oil-lined prices, the company announced Wednesday.

The signing of a binding Heads of Agreement for gas supply with GLNG partners (GLNG), would help Origin to monetise its portfolio of fuel resources.

GLNG is a joint venture between Santos, PETRONAS, Total and KOGAS. It is developing a project which will process coal seam gas (CSG) into LNG. The project will produce 7.8 million tonnes per annum of LNG for export to Asia.

Origin is also building a gas export project with ConocoPhillips, and China's Sinopec. Both gas export projects are expected to come online around 2015.

Under the terms of the agreement, Origin will supply GLNG with 365 PJ of gas or 100 terajoules (TJ) per day over 10 years at Wallumbilla, commencing in 2015.

"The gas sales agreement with GLNG will deliver significant value to Origin, opening an export channel to market for our legacy fuel reserves and allowing a more rapid monetisation of the resource in line with international oil-linked pricing," said Origin Managing Director Grant King.

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