Australia: INPEX, Total Sell All LNG from Ichthys Project

INPEX  and TOTAL today finalised the sale of the total volume of LNG from the Ichthys LNG Project with the signing of legally binding Sales and Purchase Agreements (SPA) with CPC Corporation, Taiwan (CPC), Chubu Electric Power Company, Inc. (Chubu Electric) and Toho Gas Co., Ltd. (Toho Gas).

Under the SPAs, Ichthys LNG Pty Ltd, a company jointly owned by INPEX and TOTAL and the seller of Ichthys LNG, will sell 2.52 million tonnes per annum (mtpa) of LNG for 15 years commencing in 2017 from the Ichthys LNG Project to CPC (1.75 mtpa) ; Chubu Electric (0.49 mtpa); Toho Gas (0.28 mtpa).

This follows the announcement of 6 December 2011 of LNG sales and purchase agreements totaling 4.0 mtpa with a consortium of five major Japanese utility companies composed of Tokyo Electric Power Company, Inc, Tokyo Gas Co., Ltd., The Kansai Electric Power Co., Inc., Osaka Gas Co., Ltd. and Kyushu Electric Power Company Inc., and LNG offtake agreements for 1.8 mtpa were also agreed by INPEX and a TOTAL affiliate.

Toho gets stake in the project

INPEX Ichthys Pty Ltd, a company jointly owned by INPEX and TOTAL, and other project group companies have reached an agreement with Toho Gas to transfer its 0.42% of the Ichthys LNG project equity interest which includes the following elements:

1. Participating interest of WA-37-R (Ichthys gas-condensate field)

2. Participating interest of WA-285-P (exploration permit adjacent to WA-37-R)

3. Shares of Ichthys LNG Pty Ltd (natural gas liquefaction and LNG marketing company)

Ichthys plans

INPEX intends to install a floating central processing facility (CPF) to develop the Ichthys Field. The greater part of the condensate will be transferred from the field via a subsurface pipeline to a nearby floating production; storage and offtake (FPSO) facility where it will be treated and transferred to offtake tankers for export.

Natural gas from the field will be directed through an approximately 850km long gas export pipeline from the field to the onshore facilities in Darwin for processing into LNG and liquefied petroleum gas (LPG).

The resource estimates for the Ichthys Field are 12.8 trillion cubic feet of natural gas and 527 million barrels of condensate.

The Project is expected to produce more than 8 million tonnes of LNG and 1.6 million tonnes of LPG per annum. It will also produce 100 000 barrels of condensate per day at peak.

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Offshore Energy Today Staff, January 10, 2012; Image: INPEX