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Tuesday
28 Nov 2023

Australia Pacific LNG Deliveries Disrupted Due to Tanker Outage

28 Nov 2023  by reuters   

The logo of Australian energy company Origin is pictured in Melbourne, Australia, July 3, 2016. Picture taken July 3, 2016. REUTERS/Jason Reed/File Photo Acquire Licensing Rights
Origin Energy (ORG.AX) said on Tuesday it had reduced gas supply to the Australian Pacific LNG (APLNG) facility and liquefied natural gas (LNG) cargoes would be delayed as a loaded tanker docked at the site had lost power and was unable to leave.

As a result of the vessel blocking other tankers from entering, APLNG, operated by ConocoPhillips (COP.N), has so far deferred two LNG cargoes and Origin warned "it expected that more LNG cargoes will be deferred".

APLNG, which has a capacity of 9 million metric tons per annum (mtpa) of LNG, can only take one vessel at a time and on average loads one tanker every three days at Curtis Island off Australia's east coast.

Its two main customers are China's Sinopec (600028.SS) and Japan's Kansai Electric (9503.T).

Vessel tracking data showed the disabled tanker is the Cesi Qingdao, which was due to go to Wenzhou in China. Origin and APLNG spokespeople were not immediately available to comment on who owns the cargo.

Origin, the country's biggest energy retailer, supplies gas to APLNG, which is co-owned by ConocoPhillips, Origin and Sinopec.

ConocoPhillips is working with all parties concerned, including the relevant maritime regulator and port authority, to resolve the situation, Origin said.

The total numbers of cargo deliveries which could be deferred will depend on when the situation resolves, it said.

"In addition, Origin is taking steps to bank its non-operated portfolio production and execute additional domestic gas sales," the company said.

Shares in Origin, which is subject to a $10.6 billion takeover offer from a consortium led by Canada's Brookfield, were down 0.6% at A$8.48 as of 0108 GMT.

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