Inpex of Japan raises output of Indonesian Floating LNG project

Tuesday, 17 November 2015

The Indonesian Abadi Floating LNG Project is owned 65 percent by Inpex and 35 percent by Shell.

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The two partners said in September 2015 that they would produce more LNG than originally planned from Abadi FLNG but didn't say how much.

The Japanese and Anglo-Dutch partners have now come up with a figure contained in their revised development proposals submitted to the Indonesian government. Previous LNG output plans had mentioned 2 MTPA and 3.6 MTPA.

The Abadi FLNG project aims to develop huge potential gas reserves in the Masela Block in the Arafura Sea.

The latest statement suggests the Abadi venture will have two production hulls deployed offshore Indonesia, each with the 3.6 MTPA output capacity of the Prelude FLNG project offshore Australia that the Abadi project is modelled on.

Inpex Chief Executive Toshiaki Kitamura said in Tokyo: "The Plan of Development envisions an FLNG plant with output of 7.5 million tonnes a year. This revised plan is under discussion with the Indonesian government with the aim of propelling the project forward and to launch front-end engineering and design works soon."

Kitamura also spoke about the Ichthys LNG project scheduled to be completed in Australia in 2017. "The project is approximately 78 percent completed," he said, while reiterating that costs have risen but so have production plans.

Inpex also referred to its completion of the longest subsea pipeline in the Southern Hemisphere to bring feed-gas to the Ichthys liquefaction plant near the northern Australian port of Darwin.

The laying of the 890 kilometres of pipeline of 42 inches in diameter began in June 2014.

The feed-gas export pipeline will deliver gas from the Ichthys field offshore northwest Australia to the onshore facilities at Bladin Point, near Darwin, for processing.

"On the Ichthys LNG engineering front the fabrication of plant modules is progressing and more parts will be delivered in 2016," Inpex said.

"On the offshore side of the project, after the completion of the pipeline the installation and hook‐up of offshore production facilities will continue next year as will the completion of production wells and their commissioning," the company added.

Inpex said recently that the Australian project's commercial start-up had been pushed back by up to nine months and completion costs had increased by around 10 percent to $US37.5 billion.

The Ichthys venture will come on stream between July and September 2017 instead of the previously scheduled date of December 2016.

The company, developing the project with France's Total, said that in addition to pushing back the start-up, it was also increasing the anticipated production capacity by 6 percent to 8.9 million tonnes per annum from 8.4 MTPA.

Stakes

The buyers of the LNG also have small stakes in the Ichthys project. They include CPC Corp. of Chinese Taiwan with 2.62 percent ownership of the venture and five Japanese utilities.
They are Tokyo Gas (1.57 percent stake in project), Osaka Gas (1.20 percent), Kansai Electric Power (1.20 percent) Chubu Electric (0.73 percent) and Toho Gas (0.42 percent).