Origin Energy in conjunction with Santos Limited and Delhi Petroleum has announced that they have agreed to sell their combined 30% interest in the Carpentaria Gas Pipeline (CGP) to Australian Pipelines Trust (APT) for A$98 million. (US$1=A$1.33).
APT previously owned 70% of the CGP while Santos had an 18.02% stake, Delhi Petroleum 6.96% and Origin Energy 5.02%.
The CGP is a 840 km sales gas trunk pipeline from the South West Queensland Producers’ (Producers) Ballera gas processing plant in south west Queensland to Mt Isa. The sale is effective August 1, 2004.
APT and the producers have also agreed to hold future discussions concerning a new delivery point into the CGP which may assist in commercialising a number of smaller gas fields to the north of the Ballera gas plant.
Origin Energy’s interest in the CGP is approximately 5% and its share of the total cash consideration is A$16.4 million. The sale is expected to contribute approximately $9 million to Origin Energy’s December half-year profit.
The companies said the sale does not affect the existing shipping rights of the other producers on the CGP.
Separately, Santos said its interest in the CGP is 18.02% and its share of the total cash consideration is A$59 million. This is expected to result in Santos being able to book a profit in the current financial year ending today.
“This sale represents a continuation of Santos’ strategy to dispose of non-core assets,” said Santos’ managing director John Ellice-Flint.
“Notwithstanding the sale, Santos will continue to maintain a close relationship with APT on the CGP and in other APT gas pipelines transporting gas produced by Santos.”