Third train on the cards for LNG project, unleashing more Australian gas

March 27, 2026, by Melisa Cavcic

A new train is in the pipeline for a liquefied natural gas (LNG) project off the northwest coast of Western Australia (WA), following a recent strategic partnership between Japan’s Inpex and Texas-based Formentera to accelerate development of a project by leveraging U.S. shale technology and expertise to unlock what is deemed to be one of the world’s most promising new shale gas resources.

Ichthys Explorer central processing facility (CPF); Source: Inpex Australia

The duo has entered into a strategic joint venture partnership that will accelerate development of vast natural gas resources from the onshore Beetaloo Basin in Australia’s Northern Territory by establishing a new domestic natural gas source for the country and supporting future LNG exports to premium markets in Asia and around the world.

Thanks to this partnership, Inpex will acquire around 68,000 net acres across a core approximately 355,000-gross-acre block within Formentera’s 1.9 million-net-acre position in the basin through a staged earn-in for up to $208 million in consideration, which is subject to structured off-ramp provisions.

The Japanese firm has an option to acquire about 75,000 additional net acres within the core block for $266 – $411 million in consideration, dependent on execution timing. The transaction consideration will be primarily delivered as development capital by carrying the well costs of the drilling program.

Formentera’s wholly owned subsidiary, Daly Waters Energy (DWE), will operate the joint venture. Daly Waters and Inpex, with other joint venture partner, Tamboran Resources, will jointly advance domestic production, anchored by a 40 million cubic feet per day (mcf/d) supply agreement with the Northern Territory.

The partnership also plans to backfill and expand the region’s LNG export capacity, as the Japanese player plans to add a third LNG train at the Ichthys LNG project in Darwin, Australia, anchored by growing Beetaloo production.

Tetsu Murayama, Inpex’s Managing Director, Country Chair Australia, emphasized: “We are delighted to participate in this exciting opportunity with Daly Waters to prove up the potential to develop natural gas from the Beetaloo Sub-basin for the Northern Territory in the near term. By developing low-carbon natural gas with DWE, INPEX will also continue to supply LNG to key trading partners such as Japan and Taiwan, and we are proud of playing our part.”

With appraisal work largely complete, the next phase will focus on building out infrastructure, including takeaway and processing capacity to support domestic supply and future LNG exports. As this infrastructure develops, the Beetaloo’s scale and location are perceived to position it as a potential long-term, reliable supply source for higher-demand population and industrial centers along Australia’s East Coast.

Bryan Sheffield, Managing Partner of Formentera, commented: “I’m incredibly proud of the joint venture team and its work to prove the Beetaloo can support real, scalable natural gas development for domestic use and future export. This is a turning point for the basin, for Australia, and for the future of international shale development.”

Ichthys LNG joint venture consists of Inpex (operator with a 67.82% interest), TotalEnergies (26%), and the Australian subsidiaries of CPC Corporation Taiwan (2.625%), Osaka Gas (1.2%), Kansai Electric Power (1.2%), JERA (0.735%), and Toho Gas (0.42%).

Lia Finocchiaro MLA, Northern Territory Chief Minister, underlined: “We welcome this announcement, which supports continued economic growth in the Territory’s energy sector. The Northern Territory is uniquely positioned to power Australia’s future.

“Unlocking and delivering Beetaloo natural gas to domestic and international markets is not just an opportunity, it is a national imperative. In our year of growth, certainty and security, we will continue to back reliable, affordable energy for Territorians, and strengthen energy security for the nation, allies and region.”

Located about 220 kilometers off the coast of Western Australia and 820 kilometers southwest of Darwin, the Ichthys field covers an area of around 800 square kilometers in water averaging depths of around 250 meters, while an 890-kilometer pipeline exports gas and condensate from the field to onshore facilities for processing near Darwin.

The Ichthys project produces up to 9.3 million tons of LNG and 1.65 million tons of LPG per annum, alongside over 100,000 barrels of condensate per day at peak. Following preliminary processing offshore to remove water and extract condensate, gas from the field in the Browse Basin is channeled into the trunkline in the Asia Pacific.

Heerema’s Sleipnir vessel lifted and installed the 4,800-ton Ichthys LNG BCM on the Ichthys Explorer central processing facility (CPF), as part of the Ichthys LNG Phase 2 development off the northwest coast of Western Australia, after the module departed the PTMI fabrication yard in Batam, Indonesia.