Ori­gin En­ergy to sell Dar­ling Downs pipe­line net­work to Je­mena for $392 mil­lion

NT News - - NEWS -

ORI­GIN En­ergy will sell its Dar­ling Downs pipe­line net­work in Queens­land to Chi­nese-con­trolled Je­mena Gas for $392 mil­lion.

The pipe­line net­work is used for the trans­porta­tion of gas to Ori­gin’s Dar­ling Downs Power Sta­tion, the APLNG ter­mi­nal as well as the do­mes­tic mar­ket. As part of the sale, the en­ergy pro­ducer and re­tailer has se­cured gas trans­porta­tion ser­vices on the Dar­ling Downs pipe­line net­work for between 10 and 30 years as part of the agree­ment.

Je­mena, which op­er­ates a $9 bil­lion ma­jor util­ity in­fra­struc­ture on Aus­tralia’s east coast, is backed by the State Grid Cor­po­ra­tion of China and Sin­ga­pore Power.

The deal takes sale pro­ceeds from Ori­gin’s as­set sale pro­gram, an­nounced in 2015, to $1 bil­lion.

Ori­gin had tar­geted rais­ing $800 mil­lion through di­vest­ment of non-core as­sets by June 2017 as part of ef­forts to re­pair its bal­ance sheet.

“The sale cul­mi­nates our an­nounced as­set di­vest­ment pro­gram, the net pro­ceeds of which will be used to re­duce debt,” Ori­gin chief ex­ec­u­tive Frank Cal­abria said.

The pipe­line sale fol­lows the sale of the Mort­lake ter­mi­nal and gas pipe­line in Vic­to­ria, two wind farm projects and the 50 per cent stake in a geo­ther­mal en­ergy busi­ness.

Ori­gin is separately look­ing to off­load its con­ven­tional oil and gas ex­plo­ration as­sets.

Pic­ture: HOLLIE ADAMS

Ori­gin En­ergy chief Frank Cal­abria has said that pro­ceeds of the pipe­line net­work sale will be used to re­duce debt

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