Origin Energy Ltd
(ASX:ORG) says it is confident of locking in customers for its Australia Pacific Liquefied Natural Gas (LNG) project in Queensland this year.
A final investment decision about the joint venture with ConocoPhillips is scheduled for later this year.
Origin is under pressure to secure a customer for the project as large numbers of proposed LNG projects are looking for buyers.
The Australian Financial Review reports that Conoco, which bought 50% of the project from Origin in 2008 for $9.6 billion, says it expects a binding deal with a customer by the third quarter of 2010.
Conoco senior VP Ryan Lance says the joint venture requires an oil price of about $US45 a barrel to break even, assuming a 12% internal rate of return.
The project aims to export its first LNG from its plant on Curtis Island near Gladstone in 2014.
The joint venture partners today released the project’s Environmental Impact Statement for public comment.
Submissions to the Queensland Coordinator-General can be made up until May 4.
Australia Pacific LNG Project Director Todd Creeger says the release of the EIS is a fundamental step forward in gaining the regulatory approvals for the project.
Origin Energy posted a profit of $6.941 billion for fiscal 2009.
