Origin Energy has commenced liquefied natural gas (LNG) production at its $25bn Australia Pacific project in Queensland.
Origin Energy along with its partner and downstream operator ConocoPhillips said that the production commenced at the Curtis Island facility.
Australia Pacific LNG is set to export its first cargo by the end of 2015.
"With first LNG production, Australia Pacific LNG has now achieved its last major milestone prior to exporting LNG to customers in Asia."
Origin Energy integrated gas CEO David Baldwin said: "With first LNG production, Australia Pacific LNG has now achieved its last major milestone prior to exporting LNG to customers in Asia.
"The Origin-operated upstream activities which deliver gas to Curtis Island are fully operational and performing well, and Origin, together with partners ConocoPhillips and Sinopec, are now focused on achieving first export."
Australia Pacific produces natural gas from the country's 2P CSG reserves base in Queensland's Surat and Bowen basins.
The gas is piped to the project's LNG facility on Curtis Island where it is converted to LNG and would be exported to Asian customers.
Australia Pacific LNG, which is a joint venture project between ConocoPhillips (37.5%), Origin Energy (37.5%), and Sinopec (25%), will convert CSG to LNG.
The project's upstream production and pipeline system is operated by Origin Energy, while ConocoPhillips will operate the downstream LNG facility on Curtis Island near Gladstone, Queensland, as well as the LNG export sales business.
The LNG facility will have two processing trains, each with design production capacity of 4.5mpta.
Initial LNG export from the project's first train is expected mid-2015, with second expected in 2016.