ConocoPhillips ups stake in Australia Pacific LNG

Australia

SYDNEY, March 28, 2023 – ConocoPhillips has upped its stake in the Australia Pacific LNG (APLNG) gas export project for USD 500 million, the American energy giant announced on Monday.

The transaction will increase the company’s stake in the project by 2.49% from its current 47.5% shareholding interest and see the company take the reins as operator of the project.

The deal is expected to close in early 2024, with the effective date being July 1, 2022.

The rise in shares has been made in conjunction with an affiliate of Australian independent EIG taking over local energy player Origin Energy’s 27.5% interest in the project, its integrated gas business and its power generation and retail segment.

All deals are subject to regulatory approvals.

“APLNG is currently the largest supplier of natural gas to Australia’s East Coast domestic market, meeting between 20-30% of its total demand,” said Andy O’Brien, senior vice president of global operations of ConocoPhillips.

“It will continue supplying customers in China and Japan with reliable energy that is lower in greenhouse gas intensity than other fossil fuel alternatives, and thus help meet energy transition pathway demand for years to come.”

The APLNG project produced around 136,000 boepd in 2022.