“All of the projects are now in similar positions [in the development process]. Probably people will now test amongst themselves – are there gains to be made? – as we should test, in talking with other projects,” Mr King said.

“The time has now come to have those discussions.”

Queensland Premier Anna Bligh has previously expressed support for the consolidation of the Gladstone CSG projects.

“These are big projects requiring investment above $A4–5 billion. So the more substantial the consortia bringing the project, the more likely it is that it will be realised and that is a good thing for jobs and investment,” Ms Bligh said.

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Origin’s Australia Pacific LNG (APLNG) Development is on track for a final investment decision (FID) at the end of 2010, said Mr King, subject to the signing of binding LNG sales agreements before then.

Mr King said that the APLNG developers are in talks with a number of buyers, however only the signing of a binding agreement – as opposed to, for example, a non-binding Heads of Agreement – would trigger an FID.

Projects targeting FID during 2010–11 are competing for customers from 2015 onward, a time at which global demand for LNG is expected to grow significantly, Mr King said.

Other coal seam gas to LNG projects planned for Gladstone, Queensland include GLNG, the Gladstone ‘Fisherman’s Landing’ LNG Project, Shell Australia LNG and QCLNG. Feedgas for the projects will be piped from Queensland’s Surat and Bowen Basins.

Regulatory milestones including environmental and technical approvals for APLNG are expected to be achieved before the end of 2010, however uncertainty created by the election may also disrupt the project timeline, Mr King said.

In particular, Mr King noted that a change in government could push out the project timeline as developers wait for new ministers to settle into their roles.

At present, said Mr King, APLNG is progressing toward completion of front-end engineering and design and early site works.

In addition, Mr King said that Federal and State Government policy will have a significant influence on gas projects moving forward. Governments are expected to encourage more low-emissions developments.

Mr King noted that the Victorian Government is currently considering closing the high-emissions Hazelwood Power Station, a move that would provide an important opportunity for Mortlake Power Station. Should Hazelwood close, Mortlake – due to be completed in the first quarter of 2011 – may transition rapidly from a peaking to a base load power station, Mr King said.

Origin reported a full-year profit of $A612 million, a 91 per cent decrease on the previous financial year. The decrease was in part attributed to a $A30 million fall in revenue due to a shutdown of the BassGas Project and of the company’s Cooper Basin operations due to flooding. The 2008–09 results also included revenues from the sale of part of Origin’s share in APLNG to ConocoPhillips.

APLNG is a joint venture between ConocoPhillips and Origin, and will have the capacity to produce up to 9 MMt/a of LNG.