LNG

Inpex Corp., the largest Japanese exploration and production company and an Australian LNG plant operator, said it concluded a loan refinancing agreement for a portion of the loans taken out to develop the Ichthys facility near Darwin.

The company said the refinancing arrangements covered project finance loans arranged in 2012 with export credit agencies (ECAs) and commercial banks.

Total project finance loans for the Ichthys project amounted to approximately US$15.6 billion, of which the new refinanced amount covered in the latest agreement is US$8.3Bln.

The agreement involves seven ECAs and 28 commercial banks.

Inpex said the agreement includes loan conversions and improved borrowing conditions.

“The loan refinancing agreement is the result of a refinancing bid formally issued by Inpex in March 2020 with the objective of improving borrowing conditions, based on the Project achieving financial completion in December 2019 and continuing to sustain stable production operations,” explained the Japanese company.

Inpex is operator of the Ichthys plant at Bladin Point near Darwin and is also developing the Abadi LNG project in Indonesia with Royal Dutch Shell.

The plant came on stream in 2018 and produces almost 9 million tonnes per annum of LNG from two processing Trains.

Shares in Ichthys LNG held by Inpex amount to around 66 percent of equity, while French major Total has 26 percent.

Micro-stakes are held by CPC Corp. of Taiwan and Japan’s main utilities and LNG buyers, JERA Co. Inc., Tokyo Gas, Osaka Gas, Kansai Electric and Toho Gas.

“The project’s smooth progress despite the impact of the decline in oil prices caused by the spread of Covid-19 and other factors was evaluated favorably,” stated Inpex.

“Accordingly, Inpex received commitments from financial institutions exceeding the amount expressed in the refinancing bid,” it added.

Inpex said it believed that the refinancing agreement would enhance the value of the Ichthys project by reducing the financial commitments.

“Furthermore, the agreement is part of INPEX’s cost reduction initiatives under the company’s basic policy in response to the decline in oil prices and is expected to contribute to improving the resilience of the Inpex Group’s business structure,” it explained.

“Inpex will continue to lead efforts to sustain stable operations at the project with the understanding and cooperation of all its stakeholders,” said the company.

“These include the project’s joint venture participants, the local communities, the Australian federal government and the governments of the Northern Territory and Western Australia,” it stated.