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Oil & Gas

ConocoPhillips and Origin Energy join LNG project

September 08, 2008
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ConocoPhillips Co. and Origin Energy Ltd. plan to create a natural gas business converting coal bed methane to liquefied natural gas. According to the Associated Press, under the terms of the joint venture, ConocoPhillips will initially contribute $5 billion, and will carry the Australian energy company Origin for its first $1.2 billion in expenses. If ConocoPhillips adds an additional four payments of $500 million each for future projects, the company will have invested about $8 billion in the joint venture. In exchange for its funding, ConocoPhillips will receive a 50 percent stake in Origin Energy CSG Ltd., which holds Origin Energy’s Queensland, Australia coal bed methane assets. Origin Energy will operate the coal bed methane development, while ConocoPhillips will run the LNG project. The joint venture will market the LNG primarily to Asian markets led by ConocoPhillips for the first 10 years. The deal is expected to close in October.

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