Canberra: A consortium led by Brookfield Asset Management Inc. has made a takeover offer to Origin Energy Ltd. Org of Australia for a growth of 34.77%; The green up pointing triangle underscores interest in international assets that can aid in the energy transition.
Origin Australia is a significant shareholder in Pacific's Queensland LNG facility, which exports liquefied natural gas to Asia. ConocoPhillips COP reduction of -6.83%; The Red Down Pointing Triangle facility has benefited from higher LNG prices as countries in Europe search around the world for Russian supply options in the wake of Russia's invasion of Ukraine.
One of Australia's largest retailers of electricity and gas for homes and businesses is Origin, which also owns power plants. As it gets ready to invest more in clean energy, it recently announced that it will stop looking for oil and natural gas in land areas that do not support the Australia Pacific LNG facility.
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On Thursday, Origin announced that the consortium, which includes Brookfield and the LNG division of private equity firm EIG Global Energy Partners, had indicated it would make a cash offer of Australian $9 per share, or $5.79, for the company.
If the consortium makes a formal bid after completing due diligence, which is estimated to take up to eight weeks, Origin said its board would like to recommend that shareholders vote in favor of the deal.
The consortium made two prior offers before making its most recent cash offer of AUS$9 per share. In the event of a successful acquisition, Origin said Brookfield would purchase its Energy Markets division, which produces some gas supplies as well as electricity for customer purchase.
Origin's integrated gas business, which includes its 27.5% stake in the Australia Pacific LNG project, will be owned by EIG unit Midocean Energy.
A 10% stake in the Australia Pacific LNG project was to be sold by Origin to EIG last year for AUD 2.12 billion, but ConocoPhillips instead used its pre-vacated rights to buy the interest, preventing the sale from going ahead. Can you
Australia is one of the largest exporters of liquefied natural gas in the world, as a result of a multi-billion dollar investment binge that occurred nearly ten years ago. Last year, Australia supplied 5% of the world's LNG exports.
While the majority of this supply is destined for customers in Asia, businesses have the option of selling some of their produce on the open market when prices are high.
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The UK imported Australian LNG for the first time earlier this year, despite higher freight costs than shipping within Asia, showing how Russia's invasion of Ukraine has reorganized global gas markets and led to new commercial operations. Opportunities have been produced. About a third of all LNG sold globally is done in the spot market.
Even though China's economic weakness and the prospect of a global recession weigh on market sentiment, analysts expect LNG prices to remain high for some time as Europe spends billions of dollars to wean itself off Russian gas. Is.
However, it has become divisive for Australia to export LNG in order to benefit from the prices that domestic consumers are typically willing to pay for their gas supplies.
Australia's government earlier this year threatened to set export limits amid concerns that the country would run out of domestic gas by 2023, which hit the energy sector.
Export restrictions could have an impact on the Australia Pacific LNG project, which delivered five spot cargoes to overseas buyers between April and June, as well as two other facilities operated by Shell plc and Santos Ltd.
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Gas export enterprises agreed to offer non-contracted gas to local buyers before pursuing international customers to mitigate the threat of government-imposed export caps.