Australia’s Origin increases gas storage investment

Market: Natural gas
12/02/26

Australian utility and part-owner of the 9mn t/yr Australia Pacific LNG (APLNG) Origin Energy will spend another A$25mn ($18mn) for a planned gas storage facility in Victoria state's offshore Gippsland basin.

The 19PJ (507mn m³) capacity Golden Beach, to be operated by privately owned GB Energy, will enhance its east coast gas portfolio, Origin said in its half-year results to 31 December 2025 on 12 February.

The company had already agreed to spend A$65mn on the project, which was also loaned A$32mn by the previous federal Coalition government in 2022.

The nearshore Golden Beach field will produce gas for the domestic market in 2028 and transition to storage use the following year, GB has said, with a withdrawal capacity of 375 TJ/d.

Southeastern Australia is presently grappling with projected structural gas shortfalls expected from 2028 unless new gas comes on line locally, LNG imports begin or storage is obtained. A combination of at least two of these is required, most experts said.

The 26PJ Iona underground gas storage facility is the region's largest and assists with supply to Victorian capital Melbourne on peak demand days in winter, providing 100-400 TJ/d or up to 30pc of the state's gas demand.

Profit dips

Origin's underlying profit fell to A$593mn in July-December 2025, down from A$924mn a year earlier due to reduced earnings in the integrated gas division.

Underlying earnings before interest, taxes, depreciation, and amortisation for integrated gas were A$860mn, down by 31pc from A$1.25bn in July-December 2024, due to lower realised APLNG prices and volumes and lower trading gains.

Argus' Gladstone fob price, an LNG netback indicator calculated by subtracting freight and costs associated with production from the delivered price of LNG to Asia-Pacific, averaged $10.74/mn Btu for the second half of the year, down from $12.70/mn Btu a year earlier.

Guidance for gross APLNG gas production in 2025-26 remains at 645-680PJ, as reported last month.

By Tom Major

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