Inpex shutdown: 22 local contracts, 1000 extra workers, $350m spend in one month

LNG giant Inpex has begun the process leading to the August shutdown work on its Bladdin Point plant that will swell its Darwin workforce. Read what it means for Darwin.

Inpex Darwin Harbour LNG plant

LNG giant Inpex has begun the process leading to the August shutdown work on its Bladdin Point plant that will swell its workforce from 600 to 1600 and onshore and offshore expenditure in just one month of around $350 million.

Northern Territory general manager Richard Finch briefed more than 200 Darwin industry and business community members on the pre-works to begin this month and the implementation of its 2035 vision strategy for the $60 billion facility.

The full Ichthys LNG maintenance shutdown is from August until October.

Mr Finch said this will involve 22 local companies throughout the process.

The document has three key 10-year goals:

*Expand liquefaction capacity of the Darwin Ichthys LNG facility.

*Promote lower-carbon solutions

*Expand its businesses in energy-related fields.

“Inpex Australia is in a perfect spot for these three goals … as an organisation the Territory is set up for these goals,:" Mr Finch said.

Richard Finch Inpex NT general manager Richard Finch

“We have a goal that sits underneath this of 60 per cent growth for the company and 60 per cent reduction in emissions.

“At the same time we are also investing in renewable power generation.”

“This will be the largest shutdown we have undertaken both onshore and offshore. with 22 local contracts during that shutdown period.

“This month we will slowly ramp up some of the activities for that shutdown. The planned Darwin spend is $200m onshore and overall taking offshore into account it is about $350 million for that month of activity.

Mr Finch said the anticipated increased demand for LNG from northern Asia would drive a third LNG train in Darwin.

He said Inpex has ambitions to replace Ichthys gas with gas from the Timor Sea’s Cash-Maple field by the mid 2030s.

“The life of Ichthys is 40 years and Cash-Maple is part of achieving that,” he said.

“Looking ahead we plan to have train three at Ichthys and ready for start up in early 2030s. “So obviously we are looking at other potential opportunities along the way that can give us enough gas for another train at Ichthys.

“Although whatever we do and where we get the gas from it has to be low carbon.”

Pacific Breeze transports Inpex LNG to regional markets

Mr Finch said carbon capture and storage (CCS) is a high priority for the company as the world transitions away from fossil fuels.

Carbon capture, utilisation and storage is an emerging emissions reduction technology.

CCS sees gas developers remove carbon dioxide from supplies before it is often buried deep underground.

It’s recognised as critical technology in the global climate change action mix to achieve net-zero emissions targets by the International Energy Agency and the Intergovernmental Panel on Climate Change.

“The activity is supported from Darwin and it’s hoped the Bonaparte project will become one of the world’s largest CCS developments,” Mr Finch said.

“Inpex wants to introduce carbon capture and storage to Ichthys LNG by the end of the decade with the removal of CO2 from the Ichthys gas reservoir.

“CCS is a safe and proven technology that’s critical for the world to decarbonise and it will give us the ability to reduce our greenhouse gas emissions by 40 per cent.

“We see an opportunity for a CCS hub and we are collaborating to progress this concept with Santos, the NT and federal governments.

“We believe there will be longer term opportunities to take carbon dioxide from other emitters and store for them.”

The Territory is Australia’s third largest LNG producer, with gas exports generating more than 20 per cent of the Territory’s gross state product,

The Territory’s world-class gas resources are considered one of our strongest advantages and a recognised priority growth sector.