Australia: INPEX Announces LNG Sales from Ichthys Project

INPEX Corporation announced that the Ichthys Project Joint Venture has a clear prospect of completing the sales of the entire 8.4 million tonnes per annum of LNG from the Ichthys Project.

The Ichthys Project Joint Venture has reached an agreement with Chubu Electric Power on LNG sales of 0.49 million tonnes per annum, with Toho Gas Co on LNG sales of 0.28 million tones per annum and with CPC Corp, Taiwan on LNG sales of 1.75 million tonnes per annum, from the Ichthys Project over 15 years commencing in 2017. INPEX and a Total affiliate will also take a total of 1.8 million tonnes per annum of LNG from the Ichthys Project.

Furthermore, LNG marketing negotiations are close to being finalized with five major Japanese utility companies. This results in that the LNG volume of 8.4 million tonnes per annum will have been sold with a large part of the Ichthys LNG to be delivered to Japan. The LNG sales and purchase agreements with each of the respective buyers are expected to be signed in a timeframe to allow for the final investment decision, due in 4th Quarter 2011.

The Ichthys Project is a Joint Venture between INPEX Browse Ltd (76%, the Operator) and Total E&P Australia 24%). Gas from the Ichthys Field, in the Browse Basin offshore of Western Australia, will undergo preliminary processing offshore to remove water and raw liquids, including condensate. The gas will then be exported to the onshore processing facilities in Darwin via an 885km subsea pipeline.

The Ichthys Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with 100,000 barrels of condensate per day at peak.

Source: INPEX