Origin Energy

Origin Energy Ltd
Company type	Publicly traded company
Industry	Energy
Predecessor	Boral, South Australian Gas Company (SAGASCO)
Founded	February 18, 2000; 26 years ago in Australia
Headquarters	Sydney, Australia
Area served	Australia, United Kingdom (through ownership in Octopus Energy)
Products	Electricity, natural gas, renewable energy assets (wind and solar)
Website	originenergy.com.au

Origin Energy Ltd is a publicly traded company listed on the ASX, with its main office located in Sydney. It stands as a leading vertically integrated electricity producer and supplier of both electricity and natural gas. The company manages the Eraring Power Station, which is New South Wales' largest coal-fired power facility, slated for shutdown in 2027. As of 2024, Origin has announced intentions to reduce its holdings in wind and solar energy assets to improve returns for investors. Additionally, it possesses a 20% ownership share in Octopus Energy, a renewable energy retailer based in the United Kingdom.

History

Origin Energy was established on 18 February 2000 following a demerger from Boral, incorporating the South Australian Gas Company (SAGASCO). During 2001 and 2002, it secured a Victorian electricity retail licence from distributors Powercor and CitiPower. The SEAGas pipeline, completed in 2004, connected gas markets between Victoria and South Australia. Origin holds a 50% interest in the Kupe Gas Field and previously acquired a 51.4% stake in New Zealand’s Contact Energy from Edison Mission Energy, which was divested in 2015.

On 27 November 2006, Origin acquired Sun Retail, previously the retail division of Energex, for $1.202 billion. In December 2010, the company announced its purchase of the retail operations of Country Energy and Integral Energy from the New South Wales Government for A$3.25 billion; this transaction was finalized in March 2011 alongside a GenTrader arrangement with Eraring Energy.

In June 2022, Origin was penalised $17 million due to breaches related to obligations toward customers experiencing financial hardship. By August 2022, the company committed to reaching net-zero emissions—both direct and indirect—by the year 2050.

In November 2022, an $18 billion acquisition proposal was made by a consortium led by Brookfield Asset Management and EIG Global Energy Partners. Origin consented to this offer in March 2023, with Brookfield taking control of its energy market business and EIG's MidOcean Energy acquiring its integrated gas segment. The Australian Competition and Consumer Commission granted approval for the takeover in October 2023; nonetheless, the acquisition was called off in December after shareholders, spearheaded by AustralianSuper, declined to approve the deal by not reaching the necessary 75% majority vote.

Exploration and production of natural gas

Origin's asset base encompasses the Bowen and Surat Basins located in Queensland, as well as the Browse Basin in Western Australia. In 2017, Origin divested its subsidiary Lattice Energy along with its conventional upstream oil and gas holdings to Beach Energy for $1,585 million.

Australia Pacific LNG, Queensland, Australia

Australia Pacific LNG (APLNG) is a collaborative venture between Origin Energy, US-based ConocoPhillips, and China's Sinopec. This initiative focuses on developing gas reserves within the Surat and Bowen Basins, managing a 530 km pipeline that transports gas to an LNG facility on Curtis Island, where LNG production is also conducted.

On 26 October 2017, APLNG entered into a 14-month sales contract with Origin to deliver 41 petajoules of gas starting from November 1. This agreement raised Origin’s overall supply commitment to 186 PJ for 2018, representing nearly 30% of the domestic gas demand along Australia's east coast.

Energy retail services

Origin caters to around 4.217 million customers spanning large industrial users, residential households, and small business sectors.

Electricity generation

Origin controls approximately 6,010 MW of electricity capacity, which accounts for roughly 13% of the National Electricity Market's total capacity.

Power station	State	Location	Capacity MW	Peak/base	Commissioned	Fuel	Notes
Darling Downs Power Station	Queensland	Dalby	644	Baseload	2010	coal seam gas sourced from the Surat Basin
Roma Power Station	Queensland	Roma	80	Peaking	1999	Gas	Constructed by Boral
Mortlake Power Station	Victoria	12 km west of Mortlake	566	Peaking	2012	Gas from the Otway Basin	Largest gas-fired facility in Victoria
Ladbroke Grove Power Station	South Australia	Penola	80	Peaking	2000	Natural gas
Quarantine Power Station	South Australia	Torrens Island	224	Peaking	2000 (expanded in 2009)	Gas
Uranquinty Power Station	New South Wales	Uranquinty	664	Peaking	2009	Gas
Eraring Power Station	New South Wales	Dora Creek	2880	Baseload	1982	Coal	Australia's largest power generation facility
Mount Stuart Power Station	Queensland	Stuart, Townsville	423	Peaking	1999	Kerosene	Largest power station in North Queensland; features open-cycle gas turbines
Shoalhaven Hydro Pump Storage Scheme	New South Wales	Kangaroo Valley and Bendeela	240	Peaking		Pumped storage hydroelectric plants
Osborne Cogeneration Plant	South Australia	Osborne	180	Baseload and peak		Co-owned by Origin and ATCO Power
Worsley Cogeneration Plant	Western Australia	Worsley	60			Supplies steam and electricity to the Worsley Alumina Refinery; jointly held by Origin and Verve Energy
Dandenong Cogeneration Plant	Victoria	Dandenong	120			Gas-fueled; developed in partnership with Places Victoria, Australia's pioneering urban distributed energy precinct
Bendigo and Ballarat Solar Parks	Victoria	Ballarat and Bendigo	0.300		2009	Solar	Annual generation approximately 710 MWh

Whistleblower claims

In January 2017, The Guardian published allegations from whistleblower Sally McDow, who formerly served as a compliance manager at Origin. She asserted that the company neglected critical wellfield integrity concerns, failing to properly maintain hundreds of wells across Australia and New Zealand. McDow further alleged that Origin did not seal wells after their use and omitted reporting incidents both internally and to regulatory bodies. She also highlighted a workplace environment marked by bullying and harassment. According to McDow, she raised these issues with the CEO and Grant King, then President of the Business Council of Australia, who reportedly discouraged her from reporting to avoid opposition against the unconventional gas sector. Origin has denied all these accusations.

Beetaloo Basin hydraulic fracturing

Origin secured approval from the Northern Territory government for fracking activities in August 2019 and initiated drilling operations in October 2019. Following a six-month suspension due to COVID-19 restrictions, fracking recommenced in September 2020. However, production at the Kyalla well site was postponed until the latter half of 2021 as a result of pandemic-related delays.

Local authorities voiced apprehensions regarding potential groundwater contamination and noted limited awareness among communities about agreements with petroleum companies. Claims that Origin failed to engage with traditional landowners prior to exploration were contested by the Northern Land Council, which confirmed that Aboriginal landowners had been consulted and understood the contractual terms. Origin emphasized that it performed multiple safety inspections during well installation and would halt fracking operations if any safety checks were not passed.

In 2022, Origin exited its involvement in projects within the Beetaloo Basin region of the Northern Territory.

Deceptive practices and unlawful fees

In December 2020, the Australian Competition and Consumer Commission (ACCC) imposed a $126,000 penalty on Origin for providing misleading information to Victorian customers concerning price increases. Origin attributed the higher charges to adjustments made by the Essential Services Commission to the Victorian Default Offer; however, the ACCC clarified that the price rise was a decision made by Origin itself.

Later, in October 2021, Origin faced a $5 million fine for imposing prohibited exit fees amounting to $489,774 on 22,371 customers. Despite receiving complaints since 2018, Origin persisted in charging these fees until 2020. The Essential Services Commission noted that Origin was aware of the legal prohibition on exit fees and had reviewed various contract templates without removing the offending clauses. By October 2021, less than half of those wrongfully charged had been reimbursed.

Environmental pollution

In September 2022, Origin Energy admitted guilt for discharging almost 800,000 litres of contaminated water from its coal seam gas operations located in Queensland’s Western Downs area. Heavy rainfall resulted in overflow from coal seam gas storage tanks into a nearby watercourse and a landholder’s dam. The company was fined $60,000 by Brisbane Magistrates Court for breaching environmental authority conditions.

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