Origin Energy, that holds a 37.5 pct stake in the Australia Pacific LNG project, said it had entered into a deal with SEA Gas (Mortlake) Partnership for the sale of Mortlake pipeline for about A$245 million (US$177m).
Mortlake pipeline, which is currently operated by a related party of SEA Gas Mortlake, supplies gas to Origin’s Mortlake Power Station in Victoria. Origin has secured long-term gas transportation and storage services on the pipeline, the company said on Friday.
“The sale of Mortlake Pipeline demonstrates progress against our stated intention to generate at least $800 million through asset divestments including non-operated upstream interests and other infrastructure assets,” said Grant King, Origin Managing Director.
“This will help strengthen Origin’s balance sheet and build resilience in the business in a lower oil price environment,” he added.
According to Origin, the sale of Mortlake pipeline brings the cumulative proceeds of recent asset divestments to A$396 million when combined with the sale of Mortlake Terminal Station and Origin’s 50 per cent interest in OTP Geothermal Pte Ltd.
The transaction is subject to customary conditions and is expected to be completed after 30 June 2016.