Orica Sells Ethane Pipeline

21st December, 1999

Orica Limited today announced that it had completed the sale of its Moomba to Botany ethane pipeline to a consortium for approximately $124 million.

The new owners will continue to transport ethane feedstock for the Qenos plant at Botany under the terms of a long term transportation contract.

Announcing the sale, Orica’s managing director and chief executive officer, Philip Weickhardt said: It continued the divestment of non-core assets paving the way for investment in Orica’s growth businesses.

The consortium comprises UniSuper, National Australia Asset Management and John Lang Investments and was advised and arranged by Prout & Co.

The 1375 km pipeline was commissioned in 1996 to transport ethane feedstock from the Moomba gas fields in South Australia’s Cooper Basin to Orica’ s ethylene cracker at Botany in Sydney’s southern suburbs. The cracker is now owned by Qenos, a joint venture between Orica (50%) and ExxonMobil (50%).

The proceeds will be used initially to retire debt. The transaction is profit neutral for Orica.