Origin (ASX:ORG) advises that Australia Pacific LNG, in which Origin holds a 37.5 per cent interest, has signed long term infrastructure sharing arrangements with the QCLNG project, as well as an agreement to secure additional gas supplies for Australia Pacific LNG.
Under the tolling agreements, the QCLNG project will be able to transport and process gas and water from the Arrow Energy Surat Basin fields using available capacity in existing Australia Pacific LNG-QCLNG joint infrastructure.
The infrastructure sharing arrangements will start in 2020 and continue until 2035, with options to extend to the end of 2049.
Australia Pacific LNG is Queensland’s largest LNG project, and one of the biggest gas suppliers to the domestic market. In 2018, Australia Pacific LNG supplied close to 30 per cent of total east coast gas demand.
Shares in Origin (ASX:ORG) closed -1.11 per cent lower to $7.14 on Friday.