SMH: Inpex, Chevron Facing Delays as Worries Grow on LNG Start-Ups

Japan's Inpex Corporation is thought to be struggling to keep its $US34 billion ($A43.5 billion) Ichthys liquefied natural gas project in northern Australia on schedule because of bottlenecks at a South Korean shipyard that is manufacturing a massive offshore platform.

The problems highlight the huge risks that remains in the start-up of $US180 billion worth of LNG projects in Australia during the next two or three years.

Respected energy consultancy Wood Mackenzie is predicting delays not just at Ichthys but at Chevron's large Wheatstone LNG project in Western Australia, and a likely slower-than-expected ramp-up at the over-budget $US54 billion Gorgon project amid various challenges at the sites. The combined impact would be an 11-million-tonnes reduction in Australia's 2015-19 LNG output  than the consultancy was forecasting six months ago.

The 120,000-tonne offshore platform for Ichthys, the world's largest semi-submersible platform, is due to set sail for Australia in early 2016 from the Samsung Heavy Industries shipyard in Geoje, South Korea. But the yard is stretched with other major construction projects, including Royal Dutch Shell's giant Prelude floating LNG vessel, also to be sited off the far north-west Kimberley coast. MORE