Origin to sell 10pc stake in Australian LNG business for $2.1b

Mr Calabria said Origin would retain its existing seats on the Australia Pacific LNG board, while EIG would have one board seat and voting rights commensurate with its 10 per cent shareholding.

Completion of the sale is subject to pre-emptive rights in favour of ConocoPhillips and Sinopec, while ConocoPhillips must be satisfied that EIG is capable of satisfying its obligations under the Australia Pacific LNG Shareholders’ Agreement with the benefit of Origin’s supporting guarantee.

Based on an estimated completion timing of December 21, Origin’s net proceeds of the sale were expected to be $2 billion after adjustments and transaction cost, the company said.

“We look forward to the contribution our new joint venture partner, EIG, will make to the venture in the years ahead,” Mr Calabria said.

EIG, a US-based institutional investor, said it has invested in nine separate LNG projects across six countries in the past 15 years.

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“This is a groundbreaking transaction that reflects our strong confidence in the asset, our partners, and the importance of LNG as a critical enabler of the energy transition,” chairman and chief executive Blair Thomas said of the Origin deal. “The transaction leverages EIG’s extensive experience in global LNG to deliver an attractive, steady stream of cash flows for our investors.”

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