16/11/2018 - 13:30

Ichthys opens LNG plant

16/11/2018 - 13:30

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Japanese outfit Inpex today officially opened the onshore LNG processing facilities at its $46 billion Ichthys project in Darwin.

Ichthys opens LNG plant
The project is scheduled to produce more than 10 per cent of Japan’s annual LNG imports.

Japanese outfit Inpex today officially opened the onshore LNG processing facilities at its $46 billion Ichthys project in Darwin.

The project features some of the world's largest offshore facilities, linked to its onshore processing plant near Darwin by the longest subsea pipeline in the Southern Hemisphere.

At peak production, the project is scheduled to produce more than 10 per cent of Japan’s annual LNG imports, or about 8.9 million tonnes of LNG.

A report by Acil Allen Consulting forecast a $34 billion boost to WA income across the period to 2050, and generate about $73 billion of tax revenue.

The opening was attended by a number of federal government officials, including Resources Minister Matt Canavan and Trade Minister Simon Birmingham.

Mr Canavan said the project marked another strong link between Australia and Japan.

“Today’s opening marks the beginning of decades of continued economic benefits for Australia, and the nation’s north in particular,” he said.

“The Ichthys LNG project created thousands of jobs during its development and construction, and we are going to see ongoing employment, contracting and investment opportunities for generations to come, including Aboriginal and Torres Strait Islander people.”

“It is a great example of significant foreign investment creating positive outcomes at the local level.”

Inpex chief executive Takayuki Ueda said the project was iconic.

“We are very proud of the economic and social contributions INPEX and Ichthys LNG have made to date – along with 40 years of future operations that will provide lasting economic and social benefits for Australia and energy security for Japan,” he said.

Approximately 70 per cent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers.

Today’s opening comes after the departure of the first LNG cargo last month and follows the project’s first shipment of field condensate (ultra-light crude oil), which commenced at the start of October.

The project is also scheduled to commence the shipment of liquefied petroleum gas (LPG) later this year.

Six new LNG projects have now been completed since 2014 (QCLNG, GLNG, Australia Pacific LNG, Gorgon, Wheatstone and Ichthys) with the Prelude Floating LNG also nearing completion.

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