Conoco sees APLNG peak output in early 2016

OREANDA-NEWS. ConocoPhillips expects to see production at its 9mn t/yr Australia Pacific LNG (APLNG) project in Queensland peak in early 2016. The A\$24.7bn (\$19.3bn) project is scheduled to start first shipments in this year's second half.

APLNG was 88pc complete at the end of December. ConocoPhillips and Australian upstream and utility group Origin Energy each own 37.5pc of the project. Origin operates the upstream component of APLNG and ConocoPhillips operates the downstream component. The remaining 25pc is owned by Chinese state controlled Sinopec, which in turn is the largest buyer of APLNG gas with binding agreements to buy 7.6mn t/yr or 84pc of the project's total output.

"We're happy that these major projects are now getting to completion," ConocoPhillips executive vice-president of exploration and production Matt Fox said during the company's October-December quarterly results. "Not just because we don't have to spend the capex, but because now we're going to reap the reward over the next several years."