Australia's Origin Energy targets APLNG cost cuts; reaffirms forecast
(Reuters) — Australia’s Origin Energy Ltd said on Tuesday it is targeting cost reductions at its Australia Pacific LNG (APLNG) LNG project as it looks to lower its debt.
The country’s top power and gas retailer said it will seek to reduce capital and operating expenditure by more than $380 MM/yr over 18 mos at the project, and will then target further cost cuts.
Australia Pacific LNG (APLNG) is a JV between Origin Energy, US giant ConocoPhillips and China Petroleum & Chemical Corp (Sinopec).
Origin also said that APLNG is complete and is “exceeding performance expectations” as it reiterated the project’s full-year 2018 guidance.
The Sydney-based company took on additional debt to build APLNG, which it said it would be trimmed to below A$7 B by the end of fiscal 2018.
Origin also reaffirmed its full-year earnings guidance.
The company’s shares rose 2.4% in early trade on Tuesday, while the benchmark S&P/ASX 200 index was up 0.2%.
Reporting by Aditya Soni in Bengaluru; editing by Richard Pullin
- Gasum powers Equinor's platform supply vessel with bio-LNG
- ADNOC deploys pioneering AI-enabled process optimization technology
- Mexico Pacific announces long-term LNG SPA with POSCO International
- ONEOK to acquire Medallion and controlling interest in EnLink for $5.9 B
- Golar LNG signs EPC deal for $2.2-B MK II FLNG conversion project
- ONEOK to acquire Medallion and controlling interest in EnLink for $5.9 B
- Picarro launches handheld solution for natural gas leak investigation and closed-loop leak management
- Fincantieri LNG-powered Star Princess launched in Monfalcone
- Oman plans third LNG train, boosting domestic production to more than 15 MMtpy
- Brazil's fossil push undermines Lula's green ambitions
Comments