Origin Energy Limited provides an update on its acquisition of exploration permit ATP 788P. Australia Pacific LNG Pty Ltd has stated that it will not exercise its option to acquire the interest. Origin will therefore acquire a 100 per cent interest in ATP 788P. On completion, the acquisition is expected to provide 1,150 PJ of 3P CSG reserves.

Origin’s Managing Director Mr Grant King said, "ATP 788P is a high quality CSG resource which contains the southerly extension of the highly prospective Undulla Nose province in Queensland. 100 per cent ownership of the permit will allow Origin to control the exploration, development and production of this resource."

The permit is located near gas transmission infrastructure that services existing markets and is also close to Origin’s Darling Downs power station and a number of other gas fired power stations.

"The transaction typifies Origin’s strategy of securing gas resources that are located near infrastructure, can be developed at competitive prices and are close to market. It is this strategy that has underpinned our investment in new gas fired power generation and supported the performance of our retail business," Mr King said.

"These CSG reserves will add to Origin’s domestic gas supply portfolio, which also includes ownership of conventional gas reserves and contracts for purchases from third parties. This portfolio provides Origin with the flexibility to optimise the development of its upstream gas position to support its retail gas demand and supply to existing power stations.

"It also positions us well to supply new domestic gas fired power generation. As Australia moves towards a lower emissions economy, gas is likely to play a key role as a fuel for baseload generation in place of coal given its lower emissions intensity," Mr King said. "Our current portfolio of gas reserves provides the flexibility to respond to any increase in demand from gas fired power generation following the introduction of a domestic carbon price."

Tags: Origin Energy