Singapore — Japan's Inpex has commenced production of gas from the wellhead at its Australian Ichthys LNG project, after the completion of final safety verifications, and remains on track for first LNG production by the end of September, the company said in a statement Monday.
The facility, which is set to become Australia's largest condensate project, with a production capacity of 100,000 b/d condensate and 1.6 million mt/year of LPG, involves piping gas from the offshore Ichthys field in the Browse Basin in northwestern Australia, over 890 km to the onshore 8.9 million mt/year LNG plant near Darwin.
Final safety verifications included additional checks concerning electrical equipment. This has delayed gas production from the company's earlier estimate of mid-June.
Inpex holds a 62.245% operating stake in Ichthys, with Japanese LNG customers Tokyo Gas, Osaka Gas, Kansai Electric, Jera and Toho Gas holding stakes of 1.575%, 1.2%, 1.2%, 0.735% and 0.42%, respectively. Taiwan's CPC holds a 2.625% interest, while France's Total holds the remaining 30%.
The company's forecast consolidated financial results for the year ending March 2019, which factor Ichthys' expected revenue contributions, are currently being evaluated taking into account the oil price outlook and other factors, and will be announced immediately if forecasts are revised, Inpex said.
