THE AUSTRALIA Pacific LNG project in Queensland is on track to deliver first liquefied natural gas on schedule, Origin Energy says, with the development more than two thirds complete.

In the company’s March quarterly production report, Origin said it was continuing to make strong progress at APLNG.

“Australia Pacific LNG remains on track to deliver first LNG in mid-2015 with the upstream component approximately 67 per cent complete and the downstream component approximately 68 per cent complete,” Origin LNG chief executive David Baldwin said.

For the upstream component of the coal seam gas to LNG project, facilities such as a temporary power station and water ponds to enable first gas and water production from Reedy Creek were completed during the quarter.

Pipeline spur construction has also been completed to enable the receipt of gas from the QGC Ruby Jo facility once commissioning of the facility is completed by QGC.

On the downstream side of things, a number of key equipment packages were delivered during the three-month period including the train, two molecular sieve dehydrators, the propane refrigerant accumulator and the diesel oil transfer pump, compressor area collection tank pump, the analyser shelter and train 2 air coolers.

Ongoing activities included structural steel and cable tray erection, underground and above ground piping installation and area paving activities. Construction of the LNG jetty and loading platform also continued throughout the quarter.

APLNG, an incorporated joint venture between project upstream operator Origin Energy (35.5%), ConocoPhillips and Sinopec (25%), includes development of substantial coal seam gas resources in the Surat and Bowen basins, a 530 kilometre transmission pipeline, and a multi-train LNG facility on Curtis Island, near Gladstone.

Origin’s financial contribution to APLNG for the three months was $569 million.

APLNG participated in 229 wells during the March quarter, including 13 exploration/appraisal wells, 17 groundwater monitoring bores and 199 development wells.

The phase one drilling program continued, with 112 operated production wells drilled during the quarter. Of these, 43 were drilled in Condabri, 11 in Spring Gully, 30 in Combabula and 28 in Orana.

Origin reported a 3% decrease in APLNG production compared to the December quarter of 29.9 petajoules equivalent (PJe) due to fluctuating seasonal demand.

Across its entire business, Origin posted production of 32.4 PJe and sales revenue of $253 million.

When compared to the corresponding quarter in 2013, production increased 10% primarily due to increased contributions from the APLNG project and Otway. Sales revenue increased by 27%, reflecting increased production, higher average commodity prices and higher third party sales volumes.