INPEX-operated Ichthys LNG Project commences LNG shipment
INPEX CORPORATION (INPEX) announced today that the INPEX-operated Ichthys LNG Project (the Project) recently commenced shipment of liquefied natural gas (LNG) as the first shipment of LNG departed the onshore gas liquefaction plant in Darwin in the Northern Territory of Australia en route to the INPEX-operated Naoetsu LNG Terminal in Niigata Prefecture, Japan. The shipment follows the Project’s shipment of condensate (ultra-light crude oil), which commenced on October 1, 2018, as announced on the same day.
The Project is scheduled to gradually increase its production volume of LNG, and produce approximately 8.9 million tons of LNG per year, equivalent to more than 10% of Japan’s annual LNG import volume, when it reaches its production plateau. As approximately 70% of the LNG produced by the Project is scheduled to be supplied to Japanese customers, INPEX will further contribute to the stable supply of energy to Japan through the Project and continue to respond to the energy demand in Asia and the rest of the world. The Project is also scheduled to commence the shipment of liquefied petroleum gas (LPG) following shipment of LNG.
INPEX will continue to work toward achieving stable production and an early ramp-up at the Ichthys LNG Project with the understanding and cooperation of all its stakeholders, including the project’s joint venture partners, the local communities, the Australian federal government and the governments of Western Australia and the Northern Territory.
The Project’s expected revenue contribution remains unchanged from the outlook announced in the company’s forecasted consolidated financial results for the year ending March 2019 announced on August 9, 2018.
In terms of dividend forecasts, as announced at the beginning of the current fiscal year, INPEX plans to issue a commemorative dividend of ¥6 per share following the Ichthys LNG Project’s start-up and shipment of cargo.
INPEX CORPORATION is Japan’s largest exploration and production (E&P) company, and a mid-tier E&P player just behind the world’s oil majors. INPEX is currently involved in approximately 70 projects across more than 20 countries, including the Ichthys LNG Project in Australia as Operator. Through sustainably growing its oil and gas development business, INPEX aims to become a top class international oil and gas E&P Company and continue providing a stable and efficient supply of energy to its customers.
The Ichthys LNG Project is a project led by INPEX (Operator, participating interest: 62.245%) alongside major partner TOTAL (participating interest: 30%) and the Australian subsidiaries of CPC Corporation, Taiwan (participating interest: 2.625%), Tokyo Gas (participating interest: 1.575%), Osaka Gas (participating interest: 1.2%), Kansai Electric Power (participating interest: 1.2%), JERA (participating interest: 0.735%) and Toho Gas (participating interest: 0.42%) that involves liquefying natural gas lifted from the Ichthys Gas-condensate Field offshore Western Australia at an onshore gas liquefaction plant constructed in Darwin, Northern Territory, and producing and shipping approximately 8.9 million tons of liquefied natural gas (LNG) and approximately 1.65 million tons of liquefied petroleum gas (LPG) per year, along with approximately 100,000 barrels of condensate per day at peak. The Ichthys LNG Project is a large-scale LNG project by global standards, and is expected to be operational over a period of 40 years. In 1998, INPEX acquired an exploration permit in the block where the project is located, and following development studies including exploration, evaluation and FEED work, the company announced its final investment decision (FID) in January 2012. Thereafter, following the construction of the required facilities, the Project commenced production of gas from the wellhead in July 2018 and commenced shipment of condensate in October 2018.