Inpex pushes back Ichthys LNG start, again

Aerial view of the onshore Ichthys liquefaction plant (Image courtesy of Inpex)

The production start on the Inpex-led Ichthys liquefied natural gas project (LNG) in Australia has been delayed once more.

Japan’s Inpex said in a statement on Monday that the project’s central processing facility Ichthys Explorer, located offshore Western Australia, would complete trial operations in April-May, and start gas production.

“Thereafter, the project will begin the production and shipment of condensate, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) in sequence,” Inpex said.

To remind, Inpex told LNG World News earlier this month that the $37 billion LNG export project would start production by the end of March.

This is another delay for the giant LNG project as it was initially targeted to start-up in the third quarter of 2017. Inpex previously claimed that the cost overruns on the Ichthys project would be “minimal” following the first delay.


 Schedule “may fluctuate” depending on weather conditions


Inpex said in its newest statement that the LNG project’s first train at the onshore gas liquefaction plant located near Darwin, the FPSO and subsea production systems “have been completed in view of readiness for production startup.”

The LNG project has already completed drilling the production wells required for the startup of production, and the approximately 890 kilometer-long gas export pipeline was completed, according to Inpex.

“While the project’s activity schedule going forward may fluctuate depending on weather conditions at the worksites, preparation activities and other factors, Inpex will continue to
work toward the success of the Ichthys LNG project with the understanding and cooperation of all its stakeholders,” the company said.

Inpex added that the impact of this development on the profit outlook in the company’s forecasted financial results for the year ending March 2018 was nil.

The company will “factor the project’s expected revenue contributions into the forecasted consolidated financial results for the year ending March 2019, scheduled to be announced in due course,” it said.

Once the production starts up, the Ichthys LNG project is expected to produce up to 8.9 million tons of LNG and 1.6 million tons of LPG at peak annually, with up to 100,000 barrels of condensate per day at peak.

The project is a joint venture between Inpex, major partner Total, Taiwan’s CPC Corporation and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Kansai Electric, Chubu Electric Power and Toho Gas.


LNG World News Staff