The first Origin Energy price review under Sinopec’s long-term contract was completed with no change to the contract price, it has announced. Origin holds a 37.5 per cent stake in the APLNG project. APLNG is a joint venture between Origin, ConocoPhillips, and Sinopec.

It said: “Production at APLNG rose 6 per cent year-on-year to 66.8 petajoules during January-March, but dropped slightly below the December quarter’s record level.”

Origin’s revenue from APLNG came in at A$628.5 million ($411.60 million) for the January-March period, which was down from A$763.9 million a year earlier. It said revenue dropped due to lower contracted LNG sales.

APLNG’s effective oil price in the March quarter was $65 per barrel, down from $69/bbl in the Dec-19 quarter and $78/bbl in the Mar-19 quarter.

The statement said: “Both JCC and spot LNG prices softened in the March quarter as a result of demand weakness linked to the COVID-19 coronavirus pandemic.”

Origin Chief Executive Frank Calabria said: “In energy markets, we are already seeing an initial impact from the (coronavirus) pandemic on electricity demand, which along with milder weather and lower customer numbers and usage, contributed to lower volumes compared to this time last year.”

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4th May 2020