Origin shares lift after Sinopec LNG deal

Company News

Yesterday shares in Origin Energy (ASX:ORG) lifted in the first day of trading since the company announced its multi-billion dollar liquefied natural gas deal with China Petrochemical Corporation last week.

China's Sinopec has agreed to buy 4.3 million tonnes per year of liquefied natural gas (LNG) and a 15 percent stake in the Australia Pacific LNG project.  

Origin’s managing director Grant King told Reuters the offtake agreement is first and foremost, adding that, Origin is primarily a seller of LNG not equity in LNG production, but for the right buyers Origin is willing to sell equity as well.

Origin is due to make a final investment decision on Australia Pacific LNG this year.

Yesterday shares in Origin Energy rose 3.94 per cent, or 0.64 cents, to close at $16.87.
 
In the six months to 31 December 2010 Origin Energy booked a net loss of $100 million.


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