In­pex to ship first LNG cargo from Ichthys site in Septem­ber

The Gulf Today - Business - - INTERNATIONAL -

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.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.