Origin may opt for LNG joint venture, dump BG's $11.9-billion offer

Mumbai: Australia's Origin Energy, which rejected a $11.9 billion (A$13.6 billion) hostile bid by British energy firm BG Group Plc, has instead shortlisted several companies to build a liquefied natural gas project.

Origin, which rejected BG's $11.9 billion hostile offer as undervaluing its business and future prospects, plans to build an LNG project using Origin's coal seam gas (CSG) reserves - the largest in Australia.

Origin, according to the company's own estimates, has proved, probable and possible (3P) CSG reserves needed to support a two-train (6 million tonnes per annum) project.

A number of ''global participants in the energy industry" had proposed LNG projects of various sizes, managing director Grant King said  in the statement. He, however, did not name the companies.

King also said teaming up major energy groups for the production of LNG from CSG could further increase domestic gas price realisations and may deliver better value for shareholders than BG's offer.

Sydney-based Origin is planning to commit a majority of its CSG reserves to an LNG project.