Origin hit by shutdowns

ORIGIN’S quarterly production, sales and revenue have all been hit by planned shutdowns, but the good news is that there’ll be no more for the rest of the financial year.
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CSG well at Talinga, QLD. Courtesy Origin Energy

James McGrath

That’s the word from Origin’s chief of upstream Paul Zealand, who said that shutdowns at its Otway (Australia) and Kupe (New Zealand) gas plants contributed to a 13% decline in production quarter-on-quarter to 29 petajoules equivalent.

The lower production meant a 17% drop in sales to 36.2PJe and an 11% dip in revenue to $A224.5 million.

However, offsetting the losses was a restart at the BassGas (Bass Strait) project after a mid-year enhancement project in October.

Origin also took a hit on half-yearly results, with production and sales both down 5% on the previous corresponding period, with production at 62Pje and sales at 66.4PJe.

It told the market today that while the BassGas project had stunted its growth over this period, its reduced interest in the APLNG project in Queensland meant it received less of a share of the project’s production.

It diluted its share in the project from 50% to 42.5% in August 2001 and again to 37.5% in July last year.

These factors more than offset increased production from the Otway Basin as a result of the completion of the Inlet Gas Compression Project.

Meanwhile at the APLNG project, Origin reported that upstream production was 4% lower in the quarter at 27.9PJe due to lower seasonal demand from customers.

Overall, it said the upstream portion of the project was 29% complete, while the downstream was 31% complete by years end.

Civil construction on Curtis Island was 91% complete, with the train one methane compressor foundation tabletop completed in December, and work continuing on propane and ethane compressor installations.

Meanwhile, foundation work on the second train site has started and welding works on both LNG tanks remain on schedule.

Origin revealed that rainfall and flooding from ex-tropical storm Oswald had delayed construction on Curtis Island, off the Queensland coast, for a week due to restricted access, but would not affect the long-term timetable.