Origin Energy closer to $800m divestment target

Origin Energy managing director Grant King
Origin Energy managing director Grant King

Origin Energy Limited (Origin) is selling its Mortlake Pipeline to SEA Gas Mortlake, a partnership between pipeline giant APA Group and REST Industry Super.

The sale brings the company one step closer to its goal of generating at least $800 million through asset divestments including non-operated upstream interests and other infrastructure assets.

The $245 million transaction brings the total of divestments by Origin to $396 million, including earlier sales of the Mortlake terminal and a 50 per cent interest in a geothermal energy venture.

Mortlake Pipeline supplies gas to Origin’s Mortlake Power Station in Victoria. Origin has secured long-term gas transportation and storage services on the pipeline.

Origin managing director Grant King said the sale brings the company one step closer to its goal of generating at least $800 million through asset divestments including non-operated upstream interests and other infrastructure assets.

“This will help strengthen Origin’s balance sheet and build resilience in the business in a lower oil price environment,” Mr King said.