Inpex to Organically Link its Overseas Gas Assets to Japanese Infrastructure
Inpex Corporation plans to organically link its gas assets in Indonesia and Australia to its infrastructure in Japan with Naoetsu LNG terminal serving as the gateway, the Japanese firm said while announcing its annual results.
The company aims to build a solid network of operations in the Japanese natural gas market, which represents a stable source of revenue for Inpex. As well as sustaining a natural gas trunk pipeline network to supply the promising markets in the Kanto-Koshinetsu and Hokuriku regions, the company plans to increase production at the Minami-Nagaoka gas field, one of the largest gas fields in Japan.
Inpex further stated that work is continuing on the construction of the Toyama Line extension trunk pipeline network in Japan with the aim of commencing operations in mid-2016.
LNG business
The company reiterated that Ichthys LNG project in Australia is on track to be operation by the third quarter of 2017. With regard to the Abadi LNG project in Indonesia, in September 2015 Inpex submitted to the Indonesian government authorities a revised plan of development (POD) that envisions the adoption of a floating LNG with an annual LNG processing capacity of 7.5 million tons. In April 2016, the company received a notification from the Indonesian government authorities instructing to re-propose a plan of development based on onshore LNG development.
Sales drop
Consolidated net sales for the year ended March 31, 2016 decreased by ¥161.6 billion ($1.49 billion), or 13.8 percent, to ¥1,009.5 billion from the previous fiscal year due to a decrease in sales price of crude oil and natural gas.
Net sales of crude oil decreased by ¥51.1 billion, or 7 percent, to ¥679.2 billion, and net sales of natural gas decreased by ¥105.0 billion, or 24.9 percent, to ¥316.7 billion. Sales volume of crude oil increased by 36,669 thousand barrels, or 45.5 percent, to 117,227 thousand barrels. Sales volume of natural gas increased by 27,731 million cf, or 9 percent, to 337,216 million cf. Sales volume of overseas natural gas increased by 29,105 million cf, or 12 percent, to 271,912 million cf, and sales volume of domestic natural gas decreased by 37 million ㎥, or 2.1 percent, to 1,750 million ㎥ (65,304 million cf).