CONOCOPHILLIPS has wrapped up its US$1.64 billion acquisition of an additional 10% stake in the Australia Pacific liquefied natural gas (APLNG) project in Queensland. The US giant last week confirmed that its Australian subsidiary had completed the acquisition, taking to 47.5% its stake in the largest LNG export project on Australia's east coast. The US major in 2021 revealed it was upping its stake in APLNG by exercising a pre-emption right to purchase for US$1.64 billion up to a further 10% equity in the project from Australia's Origin Energy. Origin had originally agreed to sell the 10% share to US institutional investor EIG for an equity purchase price of US$1.59 billion. ConocoPhillips said that after customary closing adjustments, the cash it paid for the additional interest was roughly US$1.4 billion. The acquisition was funded from cash on its balance sheet. "We are pleased to acquire this additional stake in APLNG, which throughout its six years of operations has served as a reliable and efficient supplier of natural gas to the growing Asia Pacific market, and to Australia's east coast gas market," said ConocoPhillips chief executive Ryan Lance. "With the global energy transition under way, we expect LNG to play an increasingly important role as it is lower in greenhouse gas emissions intensity than other alternatives. "At the same time, this stra- tegic acquisition of an additional shareholding interest in APLNG further diversifies our product mix while lowering our aggregate decline rate." Origin chief executive Frank Calabria said: "We are pleased to complete the sale of a 10% interest in Australia Pacific LNG, enabling Origin to both crystallise some of the value in this world-class asset and strengthen our balance sheet at a time we are seeking to lead Australia's energy transition towards net zero emissions.
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