Japan's Inpex says Ichthys LNG project on track for March start
TOKYO (Reuters) — Japan’s top oil and gas explorer Inpex Corp is on track to begin production at its offshore Ichthys liquefied natural gas project in Australia by the end of March next year, a senior company executive said on Wednesday.
|Photo courtesy of Inpex Corp.
It expects to take about two years to reach full-scale production through a gradual increase in utilization rates by conducting various tests, said Masahiro Murayama, Inpex’s senior managing executive officer.
The central processing facility and the floating production, storage and offloading facility have been connected to the seabed and undergoing tests, he said. Tests are also being done on the onshore LNG plant, he added.
“We are confident that the preparation for start-up has been progressing steadily,” Murayama told reporters during a briefing on the company’s first-half earnings.
Once the project reaches full-scale production, Inpex will consider various options including raising dividend or buying stakes in Ichthys field’s adjacent blocks for future projects, he said.
The startup of Ichthys was previously planned for the third quarter of this year, but the installation of offshore production facilities was delayed.
But Inpex has said that production of condensate, LNG and liquefied petroleum gas (LPG) would still begin by the end of March 2018, followed by shipments.
Inpex said it usually takes 2 yr for an LNG project to reach full production. But other companies got there faster, including Chevron’s Gorgon LNG project, also in Australia, which was operating fully after just over 18 mos.
Inpex on Wednesday raised its operating profit forecast for the year ending next March by 10.4% to $3 B, citing higher oil prices.
Reporting by Osamu Tsukimori; Additional reporting by Aaron Sheldrick; Editing by Manolo Serapio Jr.
Indonesia, home to 260 MM people on 14,000 islands across a vast archipelago, is estimated to become the seventh-largest economy in the world by 2030, with such growth expected to boost the nation’s energy consumption by 80% from present levels.<sup>1</sup>
At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
View on Demand