Australia’s Origin Energy saw its liquefied natural gas revenue dip in the March quarter despite maintaining relatively stable production.

Origin revealed its revenue from the Australia Pacific LNG (APLNG) project in Queensland had fallen to about A$628.5 million (US$411.2 million) in the March quarter, down 12% on the A$716.5 million in revenue generated in the December quarter.

A 17% decline in LNG revenue, due to lower LNG nominations and lower prices, offset a 39% rise in domestic gas revenue, due to a higher proportion of short term sales in the mix.

Production from the APLNG project eased from the record high reached in the December quarter, with Origin’s share of production down 1% in the March quarter, at 67.6 petajoules.

Origin attributed the slight dip in output to wet weather restricting access for workovers and minor non-operated unplanned outages.

It noted these factors offset stronger field performance and reduced planned maintenance at Reedy Creek, Combabula and Peat.

“Australia Pacific LNG continues to deliver stable and reliable production following a record December quarter, and there was a strong increase in gas sales to the domestic market, ensuring local businesses including manufacturers were well supplied,” Origin chief executive Frank Calabria said.

Origin also confirmed Thursday the first price review under APLNG’s long-term contract with China’s Sinopec had been completed, with no change to the contract price.

APLNG is a joint venture between Origin (37.5%), ConocoPhillips (37.5%) and Sinopec (25%).

Finance

Origin sees revenue dip despite steady production