As Origin is the operator of APLNG’s gas projects, it will retain responsibility for the development of the project.

“The sale represents the best way for Origin to maximise value from Ironbark,” Origin chief executive Frank Calabria said.

“Australia Pacific LNG is able to realise additional value from the asset by utilising its existing nearby gas and water processing infrastructure to efficiently bring the gas to market. Origin will derive value from the development of the Ironbark asset through its investment in Australia Pacific LNG.”

An unnamed energy analyst said the deal made sense for Origin as Ironbark's gas would always go through APLNG assets but if Origin still owned Ironbark it would have required negotiations with Origin’s APLNG partners to process and transport the gas.

“There would have been concerns in these negotiations if Origin retained ownership of Ironbark and was negotiating the deal through APLNG,” he said.