INTERVIEW: Inpex to Start Shipment at Australia LNG Field in Sept.

July 13, 2018

Tokyo- Inpex Corp. is aiming to make the first shipment at a liquefied natural gas field off northwestern Australia at the end of September, its president and chief executive officer, Takayuki Ueda, said in a recent interview.

The Japanese resources developer had initially planned to start shipments at the Ichthys field at the end of 2016, but the date has been moved back due to factors such as delays in construction of offshore production and processing facilities.

"We'll start production possibly at the end of the fiscal first half," Ueda said of the Ichthys field.

The field is expected to produce some 8.9 million tons of LNG a year, equivalent to over 10 pct of Japan's annual LNG imports, making it one of the largest gas projects led by Japanese companies.

Gas development projects led by Japanese companies, such as the Ichthys project, play a role in energy security in resources-scarce Japan.

Inpex holds an interest of about 60 pct in the Ichthys project.

Ueda said that the start of production at the gas field is "of enormous significance to stable energy supply" to Japan as well as the company's earnings.

According to Inpex, the company predicted at the end of May that production would start in mid-June.

The firm, however, was not able to carry out the plan as Australian authorities said that the gas field required additional checks of electrical equipment, including motors and emergency lights.

This is "not a big problem," Ueda said. Jiji Press