The project, a joint venture between Origin, ConocoPhillips and Sinopec, includes a plan to develop an export coal seam gas (CSG)-to-LNG project utilising Origin’s Queensland CSG reserves and resources.
The approval includes an $A12.6 billion investment into the first phase of the project to service the sale and purchase agreement executed with Sinopec for the supply of 4.3 MMt/a of LNG for 20 years, beginning in 2015.
The first phase includes investment for one train and infrastructure to support a second train.
Origin has said that APLNG is well positioned to progress to a full two-train project, which will have a capacity of 9 MMt/a of LNG.
Managing Director Grant King said “Based on Australia’s largest 2P CSG reserves, the APLNG project will become a supplier of low emissions fuel to growing international energy markets as well as continuing to contribute cleaner energy through its domestic production, equivalent to more than 40 per cent of Queensland’s current gas requirements.”?
Queensland Premier Anna Bligh welcomed the approval and said “Queensland is poised to become a global LNG hub for key markets in the Asia Pacific region and this investment decision by APLNG really adds weight to our fast growing reputation as a hub for cleaner energy solutions.”?
Origin and ConocoPhillips each hold a 42.5 per cent stake in the project and Sinopec holds the remaining 15 per cent.
First gas is expected in mid-2015.