Origin Energy produces first cargo from second production train at Australia Pacific LNG project

Origin has produced the first cargo from the second of two production trains at its APLNG project on Curtis Island.

Origin Energy has shipped the first cargo from the second of its two production trains at the Australia Pacific liquefied natural gas facility at Curtis Island in north Queensland. (AAP Image/Origin Energy)

Origin Energy has produced the first cargo at the second of two production trains at its flagship Australia Pacific LNG project.

The latest milestone on the $24.7 billion project, jointly owned by US-based ConocoPhillips and China’s Sinopec, represents the last of six trains across three giant developments on Curtis Island in Queensland to begin production.

Other projects completed in the region include the Santos-led Gladstone LNG and the Shell-controlled Queensland Curtis LNG.

“Production of the first LNG cargo from the project’s second train on Curtis Island near Gladstone represents a defining moment in Australia Pacific LNG’s eight-year journey from project establishment to ongoing exports,” Origin’s outgoing managing director Grant King said.

“Australia Pacific LNG’s transition from development to production will see Origin benefit significantly from its investment in the project through earnings and returns from FY2018 and beyond, based on the current forward curve for oil.”

APLNG has shipped 47 LNG cargoes to Asian customers since the first train commenced production in January.

Mr King added a 120-day operational test had now been successfully completed on train one.

“This represents a major milestone in satisfying project financing completion agreements for Train 1, which is expected to occur by the end of calendar 2016,” he said.

At 3.30pm (AEDT), Origin (ORG) shares traded down 1.6 per cent at $5.53.