Ichthys LNG-condensate project faces delays, cost overruns

First production from the Inpex Corp.-operated Ichthys LNG-condensate project off Western Australia with pipeline connection to an LNG plant in Darwin has been delayed by about 9 months. There also is a 10% cost overrun over original estimates.

Inpex says the project has been delayed from yearend 2016, when it was originally expected to come on stream, to third-quarter 2017.

The company said the project was 74% complete as of June, but the revised start-up will increase the project investment by a maximum of 10%. This would bring the earlier $34-billion cost estimate up to $37.4 billion.

On the plus side, a recent technical evaluation of the whole LNG production system has prompted Inpex to increase the LNG production capacity to 8.9 million tonnes/year from 8.4 million tpy.

The updated schedule also reflects the expectation of a shortened timeframe between the on-stream date and the point where stable optimum production is reached.

All LNG initially planned to be produced has been sold. About 70% will go to Japan.

Inpex holds 62.245% interest in Ichthys.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...