Next month's reporting season will be the first time we get to see the beginning of sales from one of the three major LNG projects that will expand the revenues of two big name companies.
In pole position, the PNG LNG project started shipping LNG in late May and the other two in Queensland, the GLNG project and the Australia Pacific LNG (APLNG) project, are due to start shipping soon. Woodside Petroleum Limited (ASX: WPL) already is benefiting greatly from its operational projects offshore near WA, but now it is time for Origin Energy Limited (ASX: ORG) and Santos Ltd (ASX: STO) to shine.
Both expect to have a step-change increase in earnings from their respective projects, but there are other perks that shareholders could look forward to.
Origin Energy
Investors may know Origin as a gas and electricity utility provider, however it is deeply involved in exploring and developing oil and gas resources. It is part-owner in the APLNG, which is scheduled to start exporting LNG in mid-2015.
Its retail electricity business has softened due to increased solar power generation and general energy conservation, so LNG export revenues will bolster overall earnings. An extra perk is the expected rise in the price of gas because overseas market prices are much higher than domestic prices here. Demand for gas will also rise domestically as the states try to lock in supply.
Santos
Santos has the enviable position of being involved in both the PNG LNG and the GLNG projects. Its next business report should show how the PNG LNG's first export sales are proceeding and give investors better projections of the coming year's revenue. The GLNG project is also running on schedule to start exports in 2015.
Both Santos and Origin are actively seeking more resources in the Cooper Basin region in SA. They are teaming up with companies like Beach Energy Limited (ASX: BPT) and Drillsearch Limited (ASX: DLS), which are greatly increasing their oil production recently from newly discovered resources. Santos will also benefit from any gas price rises from the export markets.
