LNG

March 27 (LNGJ) - Inpex Corp. , the Japanese oil and gas major and operator of the Ichthys LNG export plant at Bladin Point near Darwin in Australia’s Northern Territory and developer of the Abadi LNG project in Indonesia, said that annual revenues declined by 6.5 percent to 2.164 trillion yen ($14.3Bln) from 2.316 trillion yen in 2022. Net profits dropped 35.5 percent to 321.7Bln yen ($2.12Bln) from 498.4Bln yen in the previous year as LNG and petroleum prices declined.

   The Tokyo-based company said that adjusted profits from the Ichthys LNG plant in 2023 amounted to 364.6 billion yen ($2.4Bln), which was an 8.8 percent return on invested capital (ROIC) on the joint venture. Inpex’s average realised natural gas price dropped by 18.2 percent to $5.62 per million British thermal units from $6.87 per MMBtu in 2022. “Inpex increased exploration activities surrounding the Ichthys gas field and for the Bonaparte carbon-capture and storage offshore Australia,” it added in a presentation. Inpex’s net sales revenues from crude oil decreased by 9.3 percent to 1,608 trillion yen ($10.62Bln) in 2023.

Inpex Corp., the Japanese oil and gas developer and operator of the Australian Ichthys LNG export plant near Darwin, has counter-sued South Korea's Samsung Heavy Industries over a payment dispute related to the delivery of the Central Processing Facility (CPF) for the Ichthys gas field offshore northwest Australia.

SHI confirmed that the law suit had been filed by Inpex after the South Korean company had sought arbitration in April 2021 over the unpaid full CPF contract settlement.

The commissioning at the CPF was completed at the end of May 2018 and that was the last major task to be carried out by the developers in the offshore section.

However, Inpex claimed at the time that late deliveries of the CPF and other offshore equipment were among several factors that caused the delayed commercial start of the Ichthys venture for Inpex and French major Total, now called TotalEnergies.

The Ichthys feed-gas is sent to Bladin Point in the Northern Territory through a 890 kilometres-long gas pipeline.

SHI said in its claim that after the installation of the CPF it asked the Japanese company to settle the balance of the contract amounting to $116M.

But Inpex refused, saying the delayed CPF arrival and installation had caused project hold-ups.

SHI finally lodged a complaint against Inpex on April 30, 2021, with the Singapore International Arbitration Centre, seeking payment for the rest of the contract amount.

This latest Inpex lawsuit is separate from another involving the joint venture Ichthys LNG engineering consortium JKC, consisting of KBR, Chiyoda and JGC Corp.

The Ichthys project's final cost was estimated at more than US$40 billion.

This far exceeded a 2012 cost estimate of US$34Bln for the venture, which was beset by delays of almost two years.

The first shipment of LNG from liquefaction plant was finally delivered on the 30th October 2018 to the Inpex-operated Naoetsu LNG Terminal in Niigata Prefecture.

A total of 8.4 MTPA of LNG out of the almost 9 MTPA from the two-Train plant was pre-sold to Japanese utility companies Tokyo Gas, Osaka Gas, Kansai Electric Power, Jera Co. Inc. and Toho Gas. CPC Corp. of Taiwan also receives shipments.

Abu Dhabi National Oil Company (Adnoc) in the United Arab Emirates has awarded LNG producer Inpex Corp. of Japan an exploration licence for the onshore Block 4 area as the Japanese company also advanced with LNG bunkering plans for the UAE.

The onshore Block 4 is located in a coastal area in the central part of the emirate of Abu Dhabi that includes Abu Dhabi City, and covers a surface area of around 6,116 square kilometres.

“Inpex looks forward to working in close cooperation with Adnoc to help it unlock value from Abu Dhabi’s substantial hydrocarbon resources while further expanding and strengthening our own business portfolio,” said Takayuki Ueda, President and Chief Executive Inpex.

The Japanese company recently became an LNG producer from the Ichthys liquefaction and export venture in the North Territory of Australia.

Inpex also has a stake in the Royal Dutch Shell Prelude floating LNG venture offshore northwest Australia.

The UAE is the oldest LNG producer in the Middle East from its Das Island plant offshore Abu Dhabi consisting of three Trains with nominal capacity of 5.5 million tonnes of LNG per annum.

The Japanese company added that it was working to finalize a joint venture with Adnoc on LNG bunkering in the UAE and Southeast Asia.

The logistics and services unit of Adnoc has signed the framework agreement with Inpex on developing the bunkering activities.

“We had already signed a memorandum of understanding with Adnoc about LNG bunkering, so I think there might be a lot of potential,” said Ueda.

“We would like to quickly establish a joint venture with Adnoc in this area where there is demand,” added the Inpex CEO.

The UAE is strategically located to become a major bunkering hub in the Gulf and the Arabian Peninsula.

Inpex is a long-term investor in Abu Dhabi's hydrocarbons industry, which accounts for 4.2 percent of the world's crude production.

Inpex’s subsidiary Jodco Exploration will hold and manage its interest in the onshore Block 4 as part of a 35-year concession deal.

The Japanese company will hold a 100 per cent stake during the exploration phase for the concession, which straddles Abu Dhabi’s border with Dubai.

There are two existing undeveloped oil and gas fields in the new concession area, Ramhan and Hudairiat, which both will be appraised by Inpex.

“The block’s proximity to the onshore oil producing fields of Al Dabb’iya and Rumaitha as well as the offshore field of Umm Al Dalkh, suggests it has very promising potential,” said the companies.

French energy major Total said it signed an agreement to sell 4 percent of its stake in the Australian Ichthys LNG export project in the Northern Territory for US$1.6 billion to operator Inpex Corp. of Japan.

Australia is expected to soon assume the title of the world’s largest LNG exporter and the Japanese Prime Minister Shinzo Abe will formally open the Japan-led Ichthys LNG export joint venture plant near Darwin on November 16 that will help make it happen.

Japanese energy company Inpex Corp. has acknowledged another delay in the export of the first cargo from the Australian Ichthys LNG export plant near Darwin, now envisaged for October after delays caused by electrical faults on an offshore platform.

An Australian regulatory body said some safety problems had been found on the offshore natural gas platform deployed offshore northwest Australia as part of the Ichthys LNG project of Japanese energy company Inpex Corp. and French energy major Total.

Japanese energy company Inpex said it was still scheduled to ship its first LNG cargo from the Australian Ichthys liquefaction plant near Darwin by the end of September, even as the joint venture has had some last-minute delays.

Inpex Corp, the Japanese energy company, said its Ichthys LNG export project in Australia’s Northern Territory completed the commissioning of the offshore Central Processing Facility, opening the way for the start of production at the US$37 billion joint venture, now more than 18 months behind scheduled.