Australia Pacific LNG secures $8.5bn in project funding

Australia Pacific LNG, a joint venture company between Origin Energy, ConocoPhillips and China Petrochemical Corp, has recieved $8.5bn in funding from domestic and international banks for its downstream Curtis Island liquefaction plant off Gladstone, South Australia.

The $20bn Australia Pacific LNG project also entails the development of coal seam gas resources in the Surat and Bowen Basins, a transmission pipeline.

Origin managing director Grant King said, "Given the timing of Australia Pacific LNG’s phase one FID, we believe our project schedules and budgets were based on a solid understanding of current regulatory requirements and the cost environment. We remain confident that the project remains on schedule and budget to deliver first gas in 2015, as expected."

Origin finance and strategy executive director Karen Moses said the project has received strong support from major Australian banks, as well as high level international commitment from a quality syndicate of European, Asian and Canadian institutions.

"Australia Pacific LNG was able to secure long-term finance with 16 and 17 year terms in a constrained environment, removing refinance risk from the project," she added.

The facility is subject to a final investment decision (FID) being taken on the second phase of the Australia Pacific LNG project.

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Image: Australia Pacific LNG is a joint venture company between ConocoPhillips, Origin Energy and China Petrochemical Corp. Photo: ConocoPhillips.