Inpex Signs Prelude LNG Deal

Inpex signed preliminary agreement on Thursday with Japan’s Tokyo Electric Power Company, Inc. (TEPCO) and Japan’s Shizuoka Gas Company, Ltd. for the sales and purchase of LNG from the Prelude FLNG project in Australia.

As per the deal, TEPCO will purchase approximately 0.56 MTPA of LNG and Shizuoka Gas approximately 0.07 MTPA of LNG for 8 years commencing in 2017.

The Japanese firms holds an equity interest of 17.5% in the project, which is being developed by a subsidiary of Royal Dutch Shell utilizing Floating LNG (FLNG) technology. Shell holds a 67.5% majority participating interest as the Operator while Korea Gas Corporation (Kogas) holds a 10% participating interest and Taiwan’s CPC Corporation holds a 5% participating interest.

This is the first time for Inpex to sell LNG produced from an FLNG project and represents an important milestone, the Japanese firm said in a statement.

The Prelude FLNG Project is located in Block WA-44-L, approximately 475km north-northeast of Broome, off the coast of Western Australia, consisting of the Prelude and the Concerto gas fields. These gas fields will be developed utilizing FLNG technology, and will produce at least 3.6 MTPA of LNG, 0.4 MTPA of LPG (liquefied petroleum gas) and approximately 36,000 barrels per day of condensate at peak.