Origin seeks environmental nod for $31.3 Bn LNG project

Origin Energy said it had sought formal environmental clearance for its gas export project with U.S. ConocoPhillips.

Origin, the country's largest producer of coal seam gas, said the lodging of the draft environmental statement with the Queensland state government advances the $31.3 billion project towards a final investment decision by December this year and first LNG shipments by late 2014.

While the lodging of the environmental statement is a key project milestone, investors are still looking for firm gas sales before validating the project, analysts say. There are four other projects racing to start exporting Australian coal seam gas and the Origin/Conoco development is seen by some analysts as a falling behind the rivals as it was yet to lock in any gas sales.

Origin's project, also known as Australia Pacific LNG, will produce between 3.5-4 million tonnes per year (mtpy) of LNG in the first phase in 2014, before progressively expanding up to 14-16 mtpy.