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EIG signs agreement to acquire 10% interest in APLNG for $1.592 billion

Christian Fernsby |
EIG entered into a definitive agreement under which it will acquire a 10% interest in Australia Pacific LNG Pty Limited from Origin Energy Limited for an equity purchase price of $1.592 billion.

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A tier one, integrated LNG project with an established liquefaction facility, APLNG is the largest LNG project by liquefaction capacity on Australia’s eastern seaboard and a major supplier of LNG to Asia and gas to Australia’s domestic market.

The Project, which is located in Gladstone, Queensland, has a track record of consistently achieving its nameplate capacity of 9.0 Mtpa and holds a leading acreage position spanning the prolific Surat and Bowen basins, providing long-life reserves.

The Project operates at globally competitive breakeven costs and is well positioned to meet growing LNG demand in the Asia-Pacific region.

The Project is operated by ConocoPhillips (downstream operator) and Origin Energy (upstream operator) and maintains long-dated LNG contracts with two investment grade counterparties, Sinopec and Kansai Electric.

As part of the transaction, EIG will have the right to nominate one member to APLNG’s Board of Directors and will maintain customary shareholder rights and protections.

The transaction has received approval from the Australian Foreign Investment Review Board and is subject to the waiving of pre-emptive rights by ConocoPhillips and Sinopec, as well as other customary completion conditions.


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