Inpex pushes Ichthys opening

Australia

PERTH, September 11, 2015 – Japanese operator Inpex has run into development problems on the Ichthys LNG project in northwest Australia. After a comprehensive review from senior management, start-up cost has been upgraded a further 10 percent to $37.4 billion from the already-inflated $34 billion, and production is now expected to begin in the third quarter of 2017.

“Since January 2012, when Inpex announced its final investment decision on the Ichthys LNG project, the company has worked on developing the project in various locations around the world,” the company announced via a Friday press release. “While the project’s overall development was approximately 74 percent complete as of June 2015, Inpex updated the production start schedule based on the findings of a detailed review of the project’s development schedule.”

Inpex originally announced that the LNG project would on line by the end of 2016. Though initial production has been pushed back, the company has also revised its projected output. It now expects to produce 8.4 million tonnes per year at the LNG plant, a rise of 6 percent.

The Ichthys gasfield is estimated to hold roughly 368 bcm (13 tcf) of gas, and more than 500 million barrels of condensate.

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