Australia Pacific LNG on track

Origin Energy has reported continued strong production for Q4 2014 and on-going progress on the Australia Pacific Liquefied Natural Gas (LNG) project.

Highlights include:

• Production levels 28% higher than Q3.
• Revenue 39% higher than Q3 reflecting an increase in production, higher third party sales volumes and higher average commodity price.
• Australia Pacific LNG project drilled 108 Phase 1 development wells during Q4 2013, bringing the total to 564.
• The upstream component of the APLNG project is 58% complete.
• The downstream component of the APLNG project is 62% complete.

CEO Upstream, Paul Zealand, commented: "Origin's continued strong production performance during the period can be attributed to the investments made in prior periods to improve the reliability and availability of producing assets."

CEO LNG, David Baldwin, commented: "The delivery of Australia Pacific LNG remains a key priority for Origin and we continue to make progress with the upstream component approximately 58% complete and the downstream component approximately 62% complete."

Significant APLNG activities during Q4 2013 include:

• On 25^th October, APLNG and GLNG signed gas swap and infrastructure connection agreements that provide flexibility and allow both proponents to realise capital and operational efficiencies.
• APLNG participated in 268 wells during the quarter, including 11 exploration/appraisal wells, 20 groundwater monitoring bores and 237 development wells (108 operated Phase 1 wells and 129 non-operated production wells).

Upstream project update:

• The upstream operated project was 58% complete at 31^st December 2013.
• 108 development wells were drilled in the quarter, with a total of 564 Phase 1 wells drilled to date.
• 356 km of gathering lines were constructed. Water and gas production from the Condabri resource area commenced during Q4.
• At 31^st December, the pipeline was 91% complete. Mainline welding is complete through to Curtis Island.
• Condabri Central Train 1 commissioning activities were underway in December, while construction work on Condabri South, Orana, Reedy Creek gas plants and the Talinga Pipeline Compression facility is progressing.

Downstream project update:

• The downstream project is 62% complete at the end of Q4 2013.
• The tenth, eleventh and twelfth shipments of modules were delivered to Curtis Island during the quarter.
• A number of key equipment packages were delivered including the second shipment of pre-fabricated substation buildings, the boil-off gas compressors, LNG loading arms, Train 1 molecular sieve dehydrators and propane storage drums. Items in transit included the three Train 1 cold boxes, the last two Train 2 refrigeration compressors and the final shipment of structural steel.
• Construction activities during Q4 included setting the remaining Train 1 propane condenser modules on their foundations, installing the Train 1 molecular sieves, mercury removal beds and compressor substation, completing the Train 2 compressor table tops and commencing setting of the Train 2 refrigeration compressors. The first Train 1 methane and ethylene cold boxes were delivered and set in January 2014.
• On the first LNG tank, the outer wall concrete pour was completed and the roof concrete pour was completed. On the second LNG tank, the first half of the final segment concrete pour of the outer wall was completed.
• For the LNG jetty, deck panel installation was completed on the loading platform and concrete pours commenced. All modules were placed on the jetty trestle.

Edited from various sources by Katie Woodward

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/31012014/australia_pacific_lng_on_track_113/