Japanese energy giant hoping for final investment decision by mid-decade

Inpex has put a date on when they want to have plans finalised for a third LNG train.

INPEX The 100th shipment of liquefied natural gas (LNG) cut an imposing sight in Darwin Harbour yesterday as it was given a grand welcome and send off. The shipment on the Pacific Arcadia LNG carrier was given a special escort by habour tugs with a mighty spray of water from fire hoses marking the official welcome to the Ichthys LNG onshore processing facilities before loading. SUPPLIED

INPEX wants to finalise plans for a third LNG train at its Ichthys project at Blaydin Point by mid decade and has targeted 2030 to complete construction.

Inpex general manager Roland Houareau on Thursday put meat on the bones of the company’s Vision 2020 statement released in Tokyo last week, saying the company had very clear targets for the project’s expansion.

When completed the third train will increase LNG production capacity at the plant by about 4.5m tonnes per annum from current production levels of about 9.3m tonnes from the existing two trains.

Speaking at the Winnellie workshop of Territory Instruments which partners Inpex in its Darwin operation, Mr Houareau said Inpex will contribute $7.9bn a year to the Territory economy between 2020 and 2030, a total economic contribution of about $89bn.

”For every one job (at Inpex) there’ll be 2.2 jobs created through the ecosystem and that ecosystem impacts company’s like Territory Instruments.

“Right now we are in the early stages of thinking about what the next phase will look like and what a final investment decision will look like.

“We’ll go through to a final investment decision we’re hoping aound the middle of the decade, go into a pre-feasibility stage, then a construction phase where we will look to complete construction around that 2030 period. So we’re looking at a number of steps to go but the good think is the chequered flag has been dropped.”

Inpex has about 250 direct employees in at its Blaydin Point plant and on any given day an additional 350 contractors on-site supporting the operation.”

Territory Insturments Managing Director Stuart Kenny said the long-lead time up to 2030 gives the company plenty of clear air to plan for the project’s next phase.

“We’ll start (preparing) today,” he said. “We’ll start investing and looking at investment plans. We’ll bring investment plans forward to make sure that we’re job ready for that time in 203.”

Mining and Industries Minister Nicole Manison said Inpex was “an absolute game-changer”.

“They put Darwin on the map globally when it comes to the oil and gas industry and Inpex are backing in Territorians every day.”

Japanese energy giant to build third LNG train

JAPANESE energy giant Inpex has committed its future to the NT and to developing a third train at the Ichthys onshore LNG plant.

The announcement brings to an end speculation about Inpex has long-term plans for the major Territory project.

Viewed by the NT government as one of the most significant economic announcements in the Territory’s history, the plans are outlined in the Inpex 2022 document that was released internally by the company on Friday.

In the document, Inpex outlines plans to build a third train at the Ichthys onshore plant in around 2030.

The project will inject billions of dollars and hundreds of long-term Territory jobs and is the company’s biggest local announcement since confirming it was coming to Darwin in 2011.

Inpex also confirmed plans for a Carbon Capture and Storage facility at the Ichthys LNG project, in conjunction with other participants including CSIRO and Santos.

It aims to begin injecting CO2 underground by second half of this decade – and will play a leading role in creating a CCS hub in the Darwin area.

Inpex 2022 also outlined plans to build a 10,000 cubic metre scale methanation plant in Australia — and Darwin could also be in the mix for this project.

Chief Minister Michael Gunner said Inpex had made a long-term commitment “provides confidence for decades to come”.

“This announcement is so significant that I have instructed development of our newest suburbs – Holtze and Kowandi – to be brought forward by two years to 2024,” Mr Gunner said.

“This will cater for the massive new demand for housing that this and other exciting projects in the Territory pipeline will create.

“Inpex continues to see the value in investing in the Territory - and why wouldn’t they.

“The Territory is the best place to live and this news means jobs for families and jobs for your kids.”

The massive Ichthys project centred around construction of a 900km pipeline from the WA coast to Blaydin Point. Up to 8000 jobs were created during the project’s construction phase.