Origin Energy has agreed to sell the Mortlake Pipeline to SEA Gas for $245million.
The pipeline is currently operated by a related party of SEA Gas Mortlake, and 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 of Mortlake Pipeline demonstrates progress against our stated intention to generate at least $800million 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.
The sale of Mortlake Pipeline brings the cumulative proceeds of recent asset divestments to $396million when combined with the sale of Mortlake Terminal Station and Origin’s 50 per cent interest in OTP Geothermal Pte Ltd.
The transaction is subject to customary conditions and is expected to be completed after 30 June 2016.
Multiple based on the incremental earnings impact to Origin of the newly contracted transport and storage services net of saved operating expenditure.
