Overview of Origin Energy's recent announcement

Origin Energy Limited (ASX:ORG) has confirmed that its subsidiary, Australia Pacific LNG, has been served a price review notice by Sinopec regarding its long-term LNG supply contract. Origin, which holds a 27.5 per cent interest in Australia Pacific LNG, stated that the contract mandates both parties to strive for mutual agreement on necessary changes to ensure a competitive contract price aligned with the current market rates for similar long-term LNG contracts. If consensus is not reached, the matter may be referred to an expert determination process for resolution. Any alterations to the contract price will come into effect from 1 January 2025. Origin has committed to keeping the market informed in compliance with its continuous disclosure obligations.

Executive commentary on the Sinopec price review notice

The company is committed to engaging in constructive discussions with Sinopec to reach a mutually beneficial outcome regarding the price review notice. We believe in the importance of ensuring that the contract price remains competitive within the prevailing market conditions. Origin will continue to adhere to its disclosure obligations and provide updates to the market as the situation progresses.

Summary of Origin Energy's announcement and future outlook

Origin Energy (ASX:ORG) has officially acknowledged the receipt of a price review notice from Sinopec concerning the long-term LNG supply contract of its subsidiary, Australia Pacific LNG. The company emphasized the contractual requirement for both parties to work towards an agreeable adjustment to the contract price to align with the current market rates for similar long-term LNG contracts. Origin has expressed its commitment to engaging in discussions with Sinopec to ensure a competitive contract price. The company has assured stakeholders of its dedication to fulfilling continuous disclosure obligations and providing updates on the matter. Looking ahead, Origin Energy aims to navigate the price review process effectively and uphold transparency with the market regarding any developments or decisions arising from the review.