Origin Energy has delivered record liquefied natural gas (LNG) production during the 2020 financial year, reaching its 500th export cargo in June.
Chief executive officer Frank Calabria said there were a number of highlights at the Australia Pacific LNG (APLNG) project this year, including record production, high plant reliability and continued improvement in field performance, and reductions in capital and operating costs.
Origin received record cash distributions from APLNG of $1.275 billion in the finical year, compared with $974 million in 2019.
“We have also responded by reducing our operating costs and capital expenditure, to help minimise the impact of the pandemic on our business. As we continue to navigate these challenging times, we will be closely monitoring the impact on our business and responding accordingly,” Calabria said.
However, due to lower demand and the effects of COVID-19, June quarter production at APLNG was 3 per cent lower than the March quarter, with revenues declining by 3 per cent due to fewer scheduled cargoes and lower spot LNG volumes.
The company recored a 4 per cent increase in production for the 2020 financial year due to improved operated and non-operated field performance with higher well availability and facility reliability.
APLNG, which commenced production in 2015, has a life span of at least 30 years and is a joint venture between Origin (37.5 per cent), ConocoPhillips (37.5 per cent) and Sinopec (25 per cent).