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Origin: APLNG on track for first LNG in 2015

LNG Industry,

Origin Energy Limited has released its quarterly production report for Q3 2014, reporting production of 34.9 petajoules equivalent (PJe) and sales revenue of $251.1 million.

Production levels

Production of 34.9 PJe was in line with Q2 2014, reflecting Origin's lower call on production at Otway and lower customer nominations at Kupe, offset by higher production at the Cooper Basin and Australia Pacific LNG.

Sales revenue decreased by 11% compared to the previous quarter reflecting the timing of product liftings, lower third party sales volumes and a lower average commodity price.

2013 comparison

When compared to Q3 2013, production is down 7% reflecting lower contributions from Otway, BassGas and Kupe, partially offset by Australia Pacific LNG following the commencement of production at Kenya East and Condabri in May and June 2014 respectively.

Commenting on the results, Origin CEO – Upstream, Paul Zealand, said: "Origin's production volumes during the quarter reflected the anticipated lower call on production. In order to benefit from the availability of additional LNG ramp gas, Origin will maintain a degree of flexibility through its nominations into the 2015 financial year.

Australia Pacific LNG

In reporting on the progress of the Australia Pacific LNG project, Origin CEO - LNG, David Baldwin added: "Pleasingly, the project is on track for first LNG in mid-2015 with full production expected from both trains by the end of FY2016."

The upstream component of the project is 85% complete. Australia Pacific LNG drilled 166 development wells, bringing the total number of development wells drilled to 985 at 30 September 2014. Approximately 70 wells per month are now being commissioned on an ongoing basis.

Reedy Creek Train 1 and 2, Orana Train 1 and 2 and Condabri South Train 2 Gas Processing Facilities achieved mechanical completion. Gathering installation activities continued and a total of 583-diameter km of pipe have now been installed. Pipeline commissioning continues to support gas facility commissioning with preparations to pack the pipeline to Curtis Island underway. Water treatment facilities at Condabri are now operational and importantly local farmers are receiving processed water to irrigate their land.

The downstream component is 82% complete. All modules for Train 1 are set and during the quarter the Train 1 Inlet Air Chiller was installed at Curtis Island. All remaining Train 2 modules are expected to be set prior to the end of 2014. LNG Tanks A and B were also hydrostatically tested. Commissioning and Start-Up (CSU) activities are ramping up with the first systems turned over from construction to the CSU team.

Adapted from press release by Katie Woodward

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