Origin cops pain on gas

ORIGIN Energy has revealed it will take a fresh hit when it releases its full-year results next week, lifting impairments over the past year beyond $3 billion.

The energy production and retailing heavyweight yesterday flagged plans for an extra writedown of $1.2 billion, largely relating to an impairment in its key liquefied natural gas venture.

That operation, Australia Pacific LNG, is a three-way venture Origin shares with US group ConocoPhillips and Chinese state-owned energy titan Sinopec.

It is facing an impairment charge thanks mainly to a fall in future oil price assumptions.

Origin is responsible for the operation of the Australia Pacific LNG gas fields and main gas transmission pipeline.

It says that after tax, it expects to swallow an $815 million writedown to reflect its 37.5 per cent share in the $26 billion gas project at Gladstone.