ConocoPhillips heeds Origin LNG call

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Jonathan Davis

 08 September 2008 00:25 GMT

Australia’s Origin Energy, the target of a hostile takeover bid by UK-based BG Group, today named US supermajor ConocoPhillips as its partner in a massive project to develop its coalbed methane production as liquefied natural gas.

The massive project will see ConocoPhillips invest an initial $5 billion, and eventually up to $8 billion, to develop up to four 3.5-million-tonne-per-annum compression trains to liquefy gas from Origin’s CBM assets for export to markets in the Asia-Pacific region, dwarfing several other similar projects planned in Queensland.

ConocoPhillips will also carry Origin for the first $1.15 billion of its expenses in the venture.

The deal will see ConocoPhillips earn a 50% stake in the joint venture vehicle Origin Energy CSG, which includes the Australian integrated group’s entire CBM assets in Queensland.

Origin said…

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