Inpex to ship first LNG cargo from Ichthys site in September
TOKYO/SINGAPORE: Japan’s Inpex Corporation expects to ship the first liquefied natural gas (LNG) cargo from its giant Ichthys LNG project in Australia by the end of September, an industry source with knowledge of the matter said on Thursday.
The source, who declined to be identified as he was not authorised to speak with media, said the shipment would come by late-september, although it could be sent a month or more earlier.
A spokesman for Inpex, Japan’s top oil and gas producer, said the company could not give a schedule for the first cargo.
The around $40 billion Ichthys project has seen multiple delays and cost overruns of billions of dollars due to technical difficulties. It was originally slated to start in 2016.
The commissioning LNG cargo from Ichthys will be exported to Inpex’s Naoetsu LNG terminal in Japan, according to the first source and a second one also familiar with the matter. Inpex has said the Ichthys project will start-up this month with gas production set to begin by the end of May.
Project holders in Ichthys are seeking five liquefied natural gas (LNG) cargoes for delivery into Japan and Taiwan over July to September to replace LNG they will not be able to supply from Ichthys due to delays in its start-up, two traders told Reuters.
That is to fulfil contractual commitments to buyers such as Taiwan’s state-owned CPC Corp and the world’s top LNG buyer JERA Co, a fuel joint venture of Tokyo Electric and Chubu Electric, one of the traders said.