Australian utility Origin Energy has cut the contracted sales price of gas from its Australia Pacific LNG (APLNG) project to China's state-owned energy firm Sinopec, pushing down its earnings guidance for the 2024-25 financial year by A$55mn ($35.4mn).
Australian producer APLNG — in which Origin holds a 27.5pc stake — adjusted the pricing terms of its long-term supply contract with Sinopec following a pricing review, the company said on 23 May. The new pricing terms are backdated to 1 January 2025.
Origin has not disclosed the new pricing terms of APLNG's contract with Sinopec, but said that the price review resulted in a "reduction in the JCC-linked contract slope", referring to the Japan Crude Cocktail (JCC) reference price against which it sells APLNG cargoes.
APLNG supplies Sinopec with 7.6mn t/yr of LNG from its 9mn t/yr Curtis Island terminal. APLNG's deal with the Chinese refiner is priced on a fob basis.
APLNG and Sinopec began their price review in October 2024 under the terms of their supply agreement. The contract's pricing structure can be reviewed again in 2030 at APLNG's discretion, Origin said on 23 May.
Origin's average realised LNG price reached $12.20/mn Btu in October-December 2024, up from $11.88/mn Btu a year earlier, the company said in late January.
