The Australia Pacific LNG project is currently around 60% complete and remains on track to deliver its first cargo in mid-2015, joint venture partner Origin Energy said Thursday.
Origin is the upstream operator of the coalseam gas-based Australia Pacific LNG project, located in the eastern state of Queensland. The project's downstream operations on Curtis Island in Gladstone, which comprise two production trains with total capacity of 9 million mt/year, are operated by ConocoPhillips.
The upstream component of the project is currently 58% complete and the downstream component is 62% complete, Origin said.
Origin and ConocoPhillips each own 37.5% of the Australia Pacific LNG project. China's Sinopec owns the remaining 25%.
"The project remains on track, with delivery of first LNG in mid-2015, which will deliver a step change in Origin's earnings and cash flow in the 2016 financial year when the project is delivering LNG under its existing long-term contracts," Origin Managing Director Grant King said.
Spending on the project also remains in line with its budgeted cost of A$24.7 billion ($22.3 billion), King added.
Origin is an integrated energy company with both oil and gas production assets and gas and electricity retailing operations.
The company Thursday posted profit of A$322 million for the half year ended December 31, 2013, down from A$524 million in the first half of 2012-2013. Origin attributed the decrease mainly to a gain on the sell-down of its stake in Australia Pacific LNG in the prior period, higher LNG-related funding expense and higher impairments.
Underlying profit for the half year was 5% higher year on year at A$381 million. A lower contribution from energy markets was more than offset by increased contributions from all other business segments, Origin said.
Underlying earnings before interest, tax, depreciation and amortization rose 3% to A$1.08 billion, reflecting increased contributions from exploration and production, Origin's New Zealand subsidiary Contact Energy and the corporate segment, partly offset by a lower contribution from energy markets.
Exploration and production posted EBITDA of A$302 million, while the energy market's EBITDA decreased 23% to A$505 million, Origin said.
