Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry


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.

Origin Energy Reuters Small
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


Copyright © 2016. All market data is provided by Barchart Market Data Solutions. Futures: at least 10 minute delayed. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  Cmegroupicon                                     Icelogo

FEATURED COLUMNS

Editorial comment
-Adrienne Blume
Large-scale production of shale gas in the US, which began around the turn of the century, is now feeding US exports in the form of LNG.
Regional focus
-Eugene Gerden
Annual demand for natural gas in the EU is pegged at approximately 380 Bm3y–450 Bm3y. A portion of this demand is met by regional production within the EU. However, the European energy system is beset by challenges that are impacting EU gas supply.


ADIP ULTRA: ADIP-X Reimagined

View on Demand

Shell Global Solutions International BV (Shell) is launching the improved process technology ADIP ULTRA, for cost-effective removal of CO2 down to <50ppmv. The ADIP ULTRA process is applicable in gas plants, LNG, pre-NGL, refinery HMUs and gasification syngas.
Why attend?
•Discover how looking back at decades of ADIP and ADIP-X operational experience has led to the cost effective ADIP ULTRA process
•Understand how Shell’s new absorption column internals can further enhance process performance
•Learn how Shell is a reliable partner of choice who helps you get the most out of your unit
•An opportunity to ask questions to Shell’s technical experts

May 9, 2017 9am UTC

View on Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2015 Gulf Publishing Company.