Australia’s Origin Energy Ltd. expects to write off $190-200 million by selling a 10% stake in the Australia Pacific liquefied natural gas (LNG) venture.

Ahead of the release of its half-year results on Thursday, the integrated energy company disclosed that the completion of the sale by the end of March will likely leave the company with a one-time impairment charge.

Australia Pacific LNG in Gladstone, Queensland, consists of two trains capable of a combined capacity of 10 million metric tons/year (mmty). It is considered the largest LNG facility on Australia’s eastern seaboard.

The liquefaction facility was created as a joint venture of Houston-based ConocoPhillips (37.5%), Origin (37.5%) and China’s state-owned China Petroleum & Chemical Corp., aka Sinopec (25%). Origin operates the venture’s gas fields, upstream exploration, production and pipeline system. ConocoPhillips operates the downstream LNG export facility and the export sales business.

Origin announced plans in October to sell the 10% stake for nearly $1.6 billion to EIG, a private equity giant that specializes in investments in energy infrastructure. At the time, Origin executives said the sale would free up funds to invest in the transition to low-carbon energy. ConocoPhillips in December said it would exercise its right to purchase the 10% stake from Origin.

Origin’s half-year results are coming on the heels of Australian LNG giants Woodside Petroleum Ltd. and Santos Ltd. reporting record revenues, thanks in part to high spot prices to Asia.

In 4Q2021, Australia Pacific revenue increased 91% from December 2020 and 33% sequentially. Origin received $555 million in cash distributions from the venture for the 6 months to December 2021.

Australia Pacific delivered three spot cargoes linked to the Japan Korea Marker (JKM) during 4Q2021 while the North Asian LNG market price averaged $28/MMBtu. It also sold an additional five JKM-linked spot cargoes to be delivered in March.