First LNG Shipment Departs Ichthys

Inpex Corporation confirmed Tuesday that the first shipment of liquefied natural gas (LNG) has departed from its operated Ichthys LNG project.

The first LNG shipment is destined for the Inpex operated Naoetsu LNG terminal in Niigata Prefecture in Japan. Approximately 70 percent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers, Inpex said in a company statement posted on its website.

Ichthys is scheduled to gradually increase its production volume of LNG to approximately 8.9 million tons per year.

“First cargo from Ichthys LNG is a historic moment for Inpex Japan and Australia. It demonstrates our commitment to being a safe, reliable long-term energy supplier,” Inpex President Director Australia, Seiya Ito, said in a company statement.

“Ichthys is an iconic project for Australia. With an operating life of around 40 years, Ichthys LNG will be delivering benefits to the Australian economy and community for decades to come,” he added.

The Australian Petroleum Production & Exploration Association (APPEA) Chief Executive, Malcom Roberts, said “industry applauds this first LNG shipment”.

“This world-class LNG Project – seven years in the making – will deliver jobs, taxation and export revenues for Australia for decades to come,” Roberts added.

“More than 30,000 people worldwide have worked on this project, including up to 10,000 workers in Darwin during the plant’s construction phase, providing a major economic boost for the Northern Territory,” Roberts continued.

Senator Matthew Canavan, the minister for resources and Northern Australia, welcomed the first shipment of LNG from the Ichthys LNG project.

“This is the next step in what will be decades of continued economic benefits for Australia,” Canavan said in a government statement.

"With 40 years of cargoes ahead, the Ichthys LNG project will provide multi-generational employment, contracting and investment opportunities, with Northern Australia one of the biggest economic winners,” he added.

“Besides its projected long lifespan and significant investment in Australia, the Ichthys LNG project has delivered big benefits for the Northern Territory and Australia as a whole,” Canavan continued.

The departure of LNG cargo follows the project’s shipment of field condensate (ultra-light crude oil), which commenced on October 1. The project is also scheduled to commence the shipment of liquefied petroleum gas later this year. 

Inpex Australia discovered the giant Ichthys gas and condensate field in the Browse Basin in 2000. Ichthys represents the largest discovery of hydrocarbon liquids in Australia in 50 years.