Origin a winner and loser in energy crisis
The Australasian Centre for Corporate Responsibility (ACCR) is commenting on Origin Energy’s June Quarterly Report, in which it reported a 103% increase in FY22 revenue for Australia Pacific LNG (APLNG).
Commenting on the results, Harriet Kater, Climate Lead (Australia) at the Australasian Centre for Corporate Responsibility (ACCR) said:
“Just like its local and global peers, Origin’s LNG business has benefited significantly from Putin’s invasion of Ukraine.
“And despite the gas industry spin of supporting Australia’s energy crisis, in reality companies like Origin are singularly focused on cashing in on the global conflict between Ukraine and Russia by filling the gas void.
“Whilst Origin appears eager to demonstrate an increase in domestic gas supply in Q4, APLNG’s FY22 exports increased by 136.2PJ whilst domestic supply increased by a paltry 0.6PJ.
“Unlike its pure play peers, Origin has been battered about as a fossil fuel customer at Eraring, having recently disclosed an expected plunge in earnings for its Energy Markets business.
“For now, the gas business is carrying the utility business but questions need to be asked how long this can be sustained in a decarbonising economy. At least there are transition pathways available for electric utilities.
“Concerningly, Origin is persisting with its gas expansion and associated spend in the Beetaloo and Canning basins. Again, these unconventional gas projects are in pursuit of international export customers, despite what Origin claims.
“At the 2022 AGM Origin shareholders will be asked to vote on the company’s climate transition strategy where, in an act of bold mental gymnastics, the company will likely claim its gas expansion activities are compatible with a 1.5C carbon budget.
“Shareholders must demand detail on how Origin could even claim this and question whether the company is serious about transition or whether it is lip-service.”