Inpex delays Ichthys project shipment outlook
Japanese-backed project says first shipments of LPG and LNG won’t start until December.
Inpex Corp says exports of condensate, LNG and LPG from the Ichthys project in Australia have been delayed for three months.
The Japanese energy company said the shipments are now likely to start in December rather than the previously announced start-date of late September.
Inpex began producing gas at its giant Ichthys field off northern Australia in late July, and shipments of condensate, LNG and LPG would take roughly two to three months, senior managing executive officer Masahiro Murayama told reporters.
“Given the delays already announced, the further delay in LNG exports is yet another disappointment for investors. We wonder how many more negative surprises lie ahead,” said Bernstein senior oil and gas analyst Neil Beveridge.
“Given the project has a 30year+ life however, the delay will have minimal impact on future net present value (NPV).
“Inpex expects the project to reach full capacity over 2-3 years and 60% of the 8.9 millition tons per annum (mtpa) capacity by the end of the first year.”
Ichthys is set to become Australia’s largest condensate project, with a production capacity of 100,000 boe/d of condensate and 1.6mtpa of LPG.
Gas and condensate from the Ichthys field will be exported to onshore facilities for processing near Darwin via an 890 km pipeline.
Inpex holds a 62.245% operating stake in Ichthys, with Japanese LNG customers Tokyo Gas, Osaka Gas, Kansai Electric, Jera and Toho Gas holding stakes of 1.575%, 1.2%, 1.2%, 0.735% and 0.42%, respectively. Taiwan’s CPC holds a 2.625% interest, while Total holds the remaining 30%.
