Origin Energy has signed an agreement with the Santos-led Gladstone LNG (GLNG) project with 365 petajoules of gas across 10 years from 2015: about 7 per cent of its gas requirements.

 

The sale is estimated to be valued at $3 billion.

 

Origin Managing Director, Grant King said, “The gas sales agreement with GLNG will deliver significant value to Origin, opening an export channel to market for our legacy fuel reserves and allowing a more rapid monetisation of the resource in line with international oil-linked pricing.

 

"The transaction demonstrates the strength and value inherent in Origin's diverse and flexible portfolio of physical and contracted fuel resources, which has positioned the company to capitalise on the growing demand for gas in the energy markets of Asia," Mr King said.

 

Origin has a substantial reserves position with access to more than 2,500 PJe of contract rights and uncontracted 3P equity gas reserves. Origin also possesses gas development options on Australia's east coast including Ironbark (Queensland) and Halladale/Blackwatch (Victoria).

 

"Gas demand in eastern Australia is expected to triple over the next five years and Origin continues to invest in exploration and development in anticipation of this growth," Mr King said.