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Origin marks APLNG milestone as credit rating downgraded

The start-up of the generator follows the completion of the project pipeline and first gas arriving at the LNG facility earlier this year, and sees the project remain on track for first LNG in mid-2015.

“Over the coming months, we will progressively test and start additional critical elements of the processing trains to bring the LNG facility on line and ready for first LNG export,” Australia Pacific LNG Chief Executive Officer Page Maxson said.

Each of the seven gas turbine generators, constructed by Bechtel, will produce a peak output of approximately 15 MW and combined will deliver 105 MW.

Origin and ConocoPhillips each hold a 37.5 per cent interest in the APLNG Project, with Sinopec holding the remaining 25 per cent.

Credit rating downgraded

Meanwhile, Standard & Poor’s has revised its long-term senior unsecured credit rating for Origin from BBB (negative outlook) to BBB- (stable).

Origin Executive Director Finance and Strategy Karen Moss said the revision of the credit rating is not expected to have a material impact on the company.

“Origin has, and will continue to, conserve cash flow, accelerate cost reductions and ensure capital expenditure is carefully focused on projects that will enhance cash flow and earnings in the near term,” Ms Moss said.

Origin has no intention to raise equity to fund its investment in APLNG.

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