Origin has entered into an agreement to sell its Mortlake Terminal Station, which connects its gas-fired Mortlake Power Station to Victoria’s electricity market.
Origin has agreed to sell the station for $110million to AusNet Transmission Group (AusNet Services) who currently operate and maintain the terminal station.
Under the terms of the transaction, Origin will enter into a long-term agreement with AusNet Services to continue to connect Mortlake Power Station to the Victorian network.
This planned sale is part of Origin’s broader asset divestment program announced in September 2015 targeting proceeds of $800million. The Mortlake Terminal Station sale will provide Origin with a pre-tax gain of approximately $25million.
Origin Managing Director, Grant King said, “The sale of Mortlake Terminal Station demonstrates progress against our stated intention to generate $800million through asset divestments including non-operated upstream interests, direct investments in wind generation and infrastructure assets.
“In turn, this will help strengthen Origin’s balance sheet and build resilience in a lower oil price environment.”
The transaction is subject to customary conditions – including Foreign Investment Review Board approval and finalisation of ancillary documentation with the Australian Energy Market Operator – and is expected to be completed prior to 30 June 2016.