Origin is Australia's leading integrated energy company that provides energy risk management services to large commercial and industrial clients. Total annual energy consumption among Origin's major customers is around 70 TWh of electricity and 320 PJ of gas. Since the 1960s, gas reserves in Eastern Australia have increased significantly through exploration and development of resources in several basins. LNG exports from Queensland are projected to become the largest source of gas demand in Eastern Australia by 2016. Electricity demand growth forecasts have been revised downwards, which may reduce growth in gas-fired power generation. Effective energy risk management requires understanding all aspects of the energy supply chain.

1. Eastern Australian Gas
Purchasing in a changing demand and supply environment
David Pethick, Head of Major Customers, Origin

2. Origin is the leading Australian integrated energy company
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3. The Major Customers group serves Commercial & Industrial clients
Energy
Markets
Wholesale Retail
Upstream Generation
& Trading Markets
Major
Customers
Sales Service Innovation
• Major Customers provides energy risk management services, focussed on meeting the needs of
Australia’s largest 600 energy consumers.
• Total annual energy consumption across this segment is ~70 TWh of electricity and ~320 PJ of gas.
• The Origin Major Customers team incorporates approximately 30 staff in 3 business streams.
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4. A brief history of gas commercialisation in Eastern Australia
• In the early 1960’s Exploration & Production
(E&P) for oil and gas received investment.
• By the mid-1970’s the largest gas reserves
were in the Cooper and Gippsland Basins.
• In the late-1990’s, focus moved to the
commercialisation of Coal Seam Gas (CSG)
resources in the Bowen & Surat Basins.
• Commercialisation of the offshore resources
in the Bass and Otway basins also began in
this period.
• By the turn of the century, Eastern Australian
gas consumption had reached approximately
400 PJ pa against 2P reserves of 10,000 PJ.
Source: Core Energy Group Pty. Ltd.
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5. Since 2005, Eastern Australia’s 2P reserves have increased 5-fold...
Growth in Eastern & Southern
Australian Gas Reserves(1,2)
Eastern & Southern Australian
Gas Reserves and Resources(3)
... with a further 350,000 PJ of contingent and prospective resources.
(1) Report to AEMO, Gas Reserves Development in Eastern Australia – projections prepared for the GSOO 2010, McLennan, Magasanik & Associates.
(2) Energy Quarterly August 2012 Report, EnergyQuest, December 2011 data shown in table 17.
5| (3) Eastern & Southern Australia: Existing Gas Reserves & Resources. April 2012. Core Energy Group. December 2011 data.

6. LNG exports will become Eastern Australia’s largest gas demand segment
Eastern Australian Gas Eastern Australian Gas
Demand Segments – 2010(1) Demand Segments – 2016(2)
+21 PJ pa
+11 PJ pa
+42 PJ pa
• Large Industrial segment includes all loads with an annual gas consumption greater than 10 TJ. (1)
• Annual growth forecasts are 1% for mass market, 1.2% for industrial and 3.5% for generation. (2,3)
• LNG Export assumption is total production in 2016 of ~21 MTPA, consuming ~1,260 PJ.(3)
(1) Annual gas demand by market segment Gas Statement of Opportunities 2011 for Eastern and South Eastern Australia, AEMO
(2) 20 year average annual growth rate for Mass Market & Large Industrial segments from table 5-2 of same source.
6| (3) Origin estimate of annual growth rates to approximately replicate 2016 projections shown in figure 5-5 and 5-10 from same source.

7. 30,000
APLNG’s industry leading 2P reserves base continues to expand …
30,000
25,000
30,000
25,000
20,000
30,000 25,000
30,000
20,000
25,000 15,000
PJ 30,000 20,000
25,000 15,000
20,000 10,000
30,000
120 25,000 15,000
10,000
in 1 QCLNG GSA Jan-Jun
Domestic Gas Origin Contract 20,000
3C 2C 3P 2P 5,000
100 15,000 10,000
20,000 Jul-Dec 5,000
25,000
80 15,000 -
10,000 5,000
15,000 Origin Share -
60 10,000
5,000 -
40 10,000
20,000 5,000
-
20 5,000
-
15,000
0 -
Ramp and Tail Gas Train 2 Train 1
Ramp and Tail Gas Train 2 Train 1 QCLNG GSA Dom
10,000
Ramp and Tail Gas Train 2 Train 1 QCLNG GSA Domestic Gas
Ramp and Tail Gas Train 2 Train 1 QCLNG GSA Domestic Gas Origin Co
5,000 Ramp and Tail Gas Train 2 Train 1 QCLNG GSA Domestic Gas Origin Contract 3C
Ramp and Tail Gas Train 2 Train 1 QCLNG GSA Domestic Gas Origin Contract 3C 2C 3P 2P
-
Estimated
Requirements
… and more than covers gas requirements for all commitments.
Note: Some of APLNG’s CSG reserves and resources are subject to
reversionary rights. Refer to Origin’s Management Discussion &
7| Analysis for the year ended 30 June 2012 for further information.

8. Electricity demand growth forecasts have been revised downwards
Comparison of NEM-wide energy projections(1)
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(1) 2012 Electricity Statement of Opportunities for the National Electricity Market , AEMO

9. Development in base-load gas generation lags wind and peaking plant
Current commitment status of public
generation developments in the NEM(1)
• Declining demand growth and the RET is driving generation investment towards wind and away
from gas fired generation (particularly CCGT).
• It is anticipated that the 2012 Gas SOO will revise downwards growth forecasts for gas powered
generation over the next 5 years.
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(1) 2012 Electricity Statement of Opportunities for the National Electricity Market , AEMO

10. Different approaches to managing energy risk
High Value
RELATIONSHIP SOLUTION
Proven value Tailored deals
delivery leading developed in
to preferred partnership
supplier status
Standard Complex
Needs Needs
PRICE OPPORTUNIST
Low price, Alignment of
reputable portfolio needs
supplier
Low Value
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11. Considerations for your next gas supply negotiation
• Term
• Length of contract should be driven by business needs first, market view second.
• Understanding the cost of gas as a proportion of operational costs is critical.
• Volume Certainty
• Greater daily and annual volume certainty allows for price discounts.
• Potential growth in load is valuable for retailers in a competitive market.
• Ensure you understand take-or-pay and banking mechanisms.
• Price Certainty
• Review all terms associated with the delivered price. Understand pass-through and
price adjustment mechanisms that reduce price certainty.
• Potential to reduce costs through tailored contracts (e.g. non-firm, spot pricing).
• Link costs to an index, allowing transparency and potentially hedging of value.
In summary - define an energy risk management strategy and pursue value.
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12. Conclusions
• Development of coal seam gas resources in the Bowen & Surat Basins has led to a large
volume of gas being available for commercialisation.
• A new industry, CSG to LNG export, is being created in Queensland. It will become the
largest consumer of gas in Eastern Australia.
• As with any market, significant changes in demand and supply will have a price effect.
• Declining electricity demand and increasing renewable energy supplies from wind and solar
will have an effect on requirements for new build electricity generation.
• Effective energy risk management requires knowledge of all components of the energy
supply chain. Today we haven’t talked about electrification, coal exports, carbon pricing
etc.
• Origin is Australia’s leading fuel-integrated generator/retailer. The Major Customers team
would be happy to help you develop an energy risk management strategy.
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13. Thank you
Further Information
David Pethick
Head of Major Customers
Email: david.pethick@originenergy.com.au
Office: (02) 8345 5223
Mobile: 0438 692 814
Website
www.originenergy.com.au

14. Introduction to the Petroleum Resources Management System (PRMS)
• Reserves are that part of resources which are recoverable both technically and economically.
• Contingent Resources are not yet considered mature due to technological or business hurdles.
• Prospective Resources are as yet only known to exist through indirect (i.e. non-drilling) measures.
• 1P, 2P and 3P (and their equivalents in Resources) can be interpreted as confidence levels.
• The measures are cumulative. For example, 2P can never be greater than 3P.
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Source: Petroleum Resources Management System 2007 guidelines, published by the Society of Petroleum Engineers