Origin Energy sells Australia gas pipeline network for $291 MM
MELBOURNE (Reuters) -- Origin Energy Ltd said on Friday it has agreed to sell a gas pipeline network in Australia for $291 MM, helping it beat its target proceeds for asset sales to cut debt.
|Photo Courtesy of Reuters.
Origin is selling its Darling Downs pipeline network to Jemena Gas Pipelines, owned by State Grid Corp of China and Singapore Power.
The pipeline transports gas to Origin's Darling Downs power station in Queensland state, the Australia Pacific LNG plant and the local market.
The price tag worked out to a 16.9 times multiple on the network's forecast earnings for 2018, Origin said, and takes total asset sales to A$1 B, well above the company's target of A$800 MM set out two years ago.
"We're on track to achieve our target of adjusted net debt of well below A$9 B by 30 June 2017," Origin Chief Executive Frank Calabria said in a statement.
He added that the company was making good progress towards hiving off its gas fields this year.
The company is pushing towards an initial public offering of the business while weighing up offers from gas producers and other firms, people familiar with the process have said.
Reporting by Sonali Paul; Editing by Richard Pullin
In the business of hydrocarbon production, accurate accounting of produced fluids and gases is critical from a process control, management and fiscal perspective.
The US East Coast will send out its first LNG exports in early 2018 as Dominion Energy’s Cove Point LNG export facility in Lusby, Maryland becomes operational.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
View on Demand