Japan’s Inpex has announced that its operated Ichthys LNG Project has commenced production of gas from its first offshore well and that shipments are expected to start this year.
The project consists of the development of the Ichthys gas and condensate field offshore northwestern Australia (in 260 meters of water depth) and a 889-kilometer gas pipeline together with an onshore LNG plant near Darwin in the Northern Territory.
The produced gas will be gathered within the Central Processing Facility (Ichthys Explorer) where it will be separated into gases and liquids. Thereafter, the liquids will be piped to the nearby Floating Production, Storage and Offloading (FPSO) facility (Ichthys Venturer) while the gases will be transported via the 890-kilometer long Gas Export Pipeline (GEP) to the onshore gas liquefaction plant at Darwin in Australia’s Northern Territory.
The gas will be exported to an onshore Liquefied Natural Gas (LNG) plant which will produce 8.9 million tons of LNG per year for supplying the Asian market, and approximately 1.65 million tons of liquefied petroleum gas (LPG) per year as well as an additional 15,000 barrels of condensate a day.
Inpex said that it expects to begin the shipment of products towards the end of the first half of the current fiscal year.
"The start-up of production on Ichthys is a major achievement. Ichthys will be an important addition to Total’s portfolio in the fast growing LNG market and will also contribute to the Group’s production and cash flow growth in the coming years”, commented Arnaud Breuillac, President Exploration & Production at Total.
The Ichthys LNG Project is led by Inpex (Operator, participating interest: 62.245 per cent) alongside major partner Total (participating interest: 30 per cent) and the Australian subsidiaries of CPC Corporation, Taiwan (participating interest: 2.625 per cent), Tokyo Gas (participating interest: 1.575 per cent), Osaka Gas (participating interest: 1.2 per cent), Kansai Electric Power (participating interest: 1.2 per cent), JERA (participating interest: 0.735 per cent) and Toho Gas (participating interest: 0.42 per cent).