EIG inks agreement acquiring 10 per cent interest in APLNG

KUALA LUMPUR, Oct 25 -- EIG, a leading institutional investor to the global energy and infrastructure sectors, has entered into a definitive agreement under which it will acquire a 10 per cent interest in Australia Pacific LNG Pty Limited (APLNG or the Project) from Origin Energy Limited (Origin) for an equity purchase price of US$1.592 billion. (US$1 = RM4.150)

This innovative agreement represents the first ever acquisition of an interest in an operational integrated LNG project by a private equity sponsor, according to a statement.

Chairman and Chief Executive Officer of EIG, R. Blair Thomas said: “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.”

A tier-one, integrated LNG project with an established liquefaction facility, APLNG is the largest LNG project by liquefaction capacity on Australia’s eastern seaboard and a major supplier of LNG to Asia and gas to Australia’s domestic market.

The Project, which is located in Gladstone, Queensland, operates at globally competitive breakeven costs and is well positioned to meet growing LNG demand in the Asia-Pacific region.

The Project is operated by ConocoPhillips (downstream operator) and Origin Energy (upstream operator) and maintains long-dated LNG contracts with two investment grade counterparties, Sinopec and Kansai Electric.

Over the last 15 years, EIG has invested in nine separate LNG projects located in six countries, and this acquisition represents a continuation of its strategy to gain exposure to high-quality LNG assets.

The acquisition also builds on EIG’s investment presence in Australia and provides EIG with a platform for future growth in global LNG.

As part of the transaction, EIG will have the right to nominate one member to APLNG’s Board of Directors and will maintain customary shareholder rights and protections.

The transaction has received approval from the Australian Foreign Investment Review Board and is subject to the waiving of pre-emptive rights by ConocoPhillips and Sinopec, as well as other customary completion conditions.

More details at www.eigpartners.com.

-- BERNAMA