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Project Snapshot

Ichthys LNG
Facility Type:	LNG
Scope:	New Construction
Owner:	INPEX and Total
Location:	Darwin, Northern Territory Australia
Region:	Australasia
Modified: January 13, 2012

Project description

In 2000, INPEX discovered the Ichthys gas and condensate field offshore northwestern Australia in the Browse Basin of the Timor Sea.

On Sept. 26, 2008, the Ichthys joint venture (INPEX Browse, Ltd., then-76% but now 72.805%, operator; Total E&P Australia, 24%) announced a decision to proceed with the Ichthys Project. Tokyo Gas (1.575%) and Osaka Gas (1.2 percent) have since joined the JV.

On January 13, 2012, INPEX and Total announced their decision to proceed with the project. An offshore central processing facility (CPF) will remove water and raw liquids—including condensate—from produced natural gas. Condensate will be sent from the CPF to a nearby floating production, storage, and offloading (FPSO) vessel, from which it will be transferred to tankers and shipped to markets. The natural gas, meanwhile, will be shipped from the CPF via an 889-kilometer subsea pipeline to an onshore LNG liquefaction terminal at Blaydin Point on Middle Arm Peninsula in Darwin, Northern Territory, Australia. Inpex also is participating in the ConocoPhillips-operated Darwin LNG project, which is located near the proposed Ichthys LNG terminal.

The reserve volume of the Ichthys Field is estimated to be 12.8 trillion cubic feet of natural gas and 527 million barrels of condensate. Initially the project would produce 8.4 million tonnes of LNG per annum, 1.6 million tonnes of LPG per annum, and 100,000 barrels of condensate per day at peak capacity. Total expects first production from the field in 2016.

Middle Arm Peninsula has the capacity to support the two initial LNG trains, and there is an opportunity for additional LNG trains to accommodate future expansion.

Offshore and Onshore FEED and Tenders

According to INPEX, AMEC Engineering is the lead contractor for the offshore front end engineering and design (FEED) work and Aker Solutions and JP Kenny are serving as subcontractors. Other major offshore contractors include:

Central processing facility -- Samsung Heavy Industry
Subsea production system -- General Electric
Subsea flow line construction and installation -- McDermott in cooperation with Heerema
Gas export pipeline -- Mitsui-Europipe, Sumitomo, Nippon Steel-Metal One (pipe manufacture); Mitsui-Bredero Shaw (pipe concrete coating); Saipem (pipelay)
FPSO vessel -- to be announced

Handling the Ichthys onshore FEED contract is the JKC Joint Venture, which includes JGC Corp., KBR, and Chiyoda Corp. The onshore FEED work covers the following:

two LNG trains with 8.4 million tonnes per annum capacity
LPG and condensate processing plants
LNG, LPG, and condensate storage tanks
administration facilities
utilities and services
power generation infrastructure
product offloading jetty

The Ichthys LNG Project will require more than 2,000 construction jobs and 300 full-time positions during operations.

Key Stats

Post-project processing capacity:
more than 8 million tonnes of LNG, 1.6 million tonnes of LPG per annum and 100,000 barrels of condensate per day

Project cost:
$34B

Major units:
two LNG trains (initially; expansion possible); offshore pipeline from Ichthys field (license WA-285-P) to Darwin

Construction Starts on Final Ichthys Offshore Facility
Jun 19, 2013 - The INPEX-operated Ichthys LNG Project cut first steel yesterday for the hull of its Floating Production, Storage and Offloading (FPSO) facility in Okpo, Korea.

Samsung Heavy Cuts First Steel for Ichthys LNG Semisub
Jan 25, 2013 - Samsung Heavy Industries has cut the first steel plates of the Ichthys' LNG semisub platform, with the project remaining on track to deliver first gas by year-end 2016.

Leighton Wins Ichthys Civil Works Contract
Dec 28, 2012 - Leighton Contractors has won a contract to undertake the Ichthys Project Onshore LNG Facilities Main Civil Works in Blaydin Point, Darwin, Northern Territory, Australia.

Inpex Ties Up $20B Ichthys Loan Arrangement
Dec 18, 2012 - Inpex has tied up arrangements for $20 billion in project finance loans for the Ichthys liquefied natural gas project in the Browse Basin, offshore Western Australia.

GE, CH2M HILL, UGL to Supply Power Generation for Ichthys LNG
May 02, 2012 - UGL Limited announced that in a 50:50 joint venture with EPC firm CH2M HILL it has been awarded a $550 million contract by JKC Australia LNG Pty for the construction of a combined cycle power plant for the Ichthys liquefied natural gas (LNG) project

John Holland Wins Contract for Ichthys Project
Mar 16, 2012 - Australian contractor, John Holland said on Wednesday that its 50:50 joint venture with Aussie compatriot Macmahon Holdings has won a AUD 340 million contract for undertaking site development work for the onshore facilities of Ichthys LNG.

ShawCor Signs Ichthys Pipe Coating Contract
Feb 14, 2012 - Bredero Shaw has received a contract with a value in excess of US$400 million to provide pipeline coatings and related products and services for the gas export pipeline on the Ichthys LNG Project.

KBR-JCG-Chiyoda Venture Signs $15B Ichthys Contract
Feb 09, 2012 - The JKC JV has signed the formal contract for engineering, procurement and construction (EPC) activities on the Ichthys LNG Project in Northern Australia.

Ichthys Decision Puts Darwin on the LNG Map
Jan 13, 2012 - The decision by INPEX and Total to proceed with the Ichthys LNG project will elevate the status of Darwin in Australia's Northern Territory as a regional industry hub.

Ichthys LNG Project A Northern Territory 'Game Changer' - Aussie Official
Oct 07, 2011 - A A$20 billion (US$19.4 billion) liquefied natural gas (LNG) project in Australia's far northwest will be a "game changer" for Darwin, federal resources minister Martin Ferguson says.

Inpex Executive Says Ichthys LNG Decision On Track; No Obstructions Visible
Oct 06, 2011 - There are no visible impediments that could prevent Inpex and Total from giving final approval for their Ichthys gas export project in Australia's Northern Territory, a senior Inpex executive said Thursday.

Australia Minister: Carbon Tax Not Blocking Big Energy Projects
Sep 26, 2011 - Australia remains attractive for big energy investments, despite the looming prospect of a carbon tax becoming law, Australian Resources and Energy Minister Martin Ferguson said Monday.

Clough Doris Executes Ichthys Contract
Sep 08, 2011 - Clough Limited on Thursday announced the execution of a binding contract between the Ichthys Joint Venture and Clough DORIS Joint Venture, for the Ichthys LNG Project Offshore Integrated Project Management Support Services (IPMS).

Clough DORIS Secures Ichthys LOI
Aug 09, 2011 - Clough Limited on Tuesday announced the receipt of a Letter of Intent for a contract valued in excess of A$250 million to the Clough DORIS Joint Venture for the provision of Offshore IPMS for the Ichthys LNG Project.

Inpex In Talks with Buyers for Icthys LNG Proj.
Jun 24, 2011 - Inpex announced that the Ichthys Project JV has a clear prospect of completing the sales of the entire 8.4 million tonnes per annum of LNG from the Ichthys Project.

Australia Delays Decision On Inpex's Ichthys Project By 1 Month
Jun 07, 2011 - Australia has deferred by a month a decision on whether to approve Inpex's Ichthys LNG project in the Northern Territory.

Ichthys LNG Launches Onshore Processing Tender
Dec 01, 2010 - Invitations to Tender (ITT) for the major onshore construction packages for the Ichthys LNG Project (INPEX Browse, Ltd. 76%, Operator, and Total E&P Australia 24%) have commenced.

Inpex, Total Release Tender for Ichthys Processing Facility
Nov 01, 2010 - The Ichthys Project on Monday released the Invitation to Tender (ITT) for the semi-submersible Central Processing Facility (CPF) to be located at the Ichthys Gas Field (WA-37-R) in the Timor Sea.

J P Kenny Wins Ichthys FEED Contract
May 14, 2009 - J P Kenny will carry out front end engineering design of the pipeline and umbilicals, risers and flowlines, for the Ichthys LNG project in Western Australia's Browse Basin.

AMEC Wins Ichthys FEED Contract
May 01, 2009 - AMEC on Thursday announced the award by INPEX of a contract for a Front End Engineering Design (FEED) for the Ichthys Field, offshore Western Australia.

Woodside Still To Convince JV Partners of W. Australia Gas Site
Apr 16, 2009 - Woodside Petroleum Ltd has yet to convince its Browse Basin joint venture partners to use a site north of Broome in Western Australia as a liquefied natural gas (LNG) processing hub.

Inpex Opens Shop In Darwin
Apr 09, 2009 - A major milestone for INPEX and the Ichthys Project was achieved Thursday when INPEX Corp. President Naoki Kuroda officially opened the company’s newest overseas office in Darwin, Northern Territory Australia.

Fight for Inpex Not Over: WA Premier
Feb 12, 2009 - The West Australian Premier Colin Barnett is challenging the idea that Darwin is a "done deal" for the 12 billion dollar Inpex Liquefied Natural Gas processing plant.

JKC Wins Onshore FEED Contract for Ichthys
Jan 16, 2009 - Inpex Corp., as operator of the Ichthys Project on behalf of joint venture participants - INPEX (76%) and Total E&P (24%) - has awarded the contract for the FEED of its LNG plant at Blaydin Point in Darwin, Australia.

NT Govt Moves To Guarantee Land for Ichthys LNG
Oct 21, 2008 - The Northern Territory Chief Minister says legislation will be introduced into Parliament this week to provide a guarantee to gas company Inpex that their proposed LNG plant will be able to be built at Blaydin Point in Darwin Harbour.

Ichthys Will Be Visible; Likely To Restrict Fishing - Inpex
Oct 08, 2008 - A spokesman for Inpex says the proposed gas plant for Darwin Harbour will be visible from many areas around the city.

Inpex, Total Select Northern Territory Site for Ichthys
Sep 26, 2008 - The Ichthys Joint Venture has decided that the designated industrial site on Blaydin Point on Middle Arm Peninsula in Darwin has been selected as the location for its proposed LNG processing facility.

Incoming WA Premier Seeks Talks On Inpex Gas Plant
Sep 14, 2008 - Western Australia's Premier-elect Colin Barnett says he will seek an urgent meeting with the developers of a multi-billion gas development proposed for the Kimberley.

Inpex To Drill Darwin Site
Aug 28, 2008 - Inpex is set to start a drilling project in Darwin Harbour to investigate the foundations of a site where it's considering building a $12 billion gas plant.

UPDATE: NT Rejects Reports of Darwin Inpex Project Plan
Aug 27, 2008 - Northern Territory Treasurer Delia Lawrie has dismissed reports in Western Australia that Darwin has secured the Inpex gas project.

WA Opposition Leader Wants Answers On Inpex LNG Project
Aug 26, 2008 - The Opposition Leader, Colin Barnett, is calling on the Treasurer, Eric Ripper, to come clean on whether Western Australia has lost the support of the Japanese company Inpex to build a LNG plant in the Kimberley.

Inpex Expected To Select Darwin for LNG Plant
Aug 11, 2008 - Inpex Holdings Inc. is expected to confirm this month that it will build a A$12 billion ($10.7 billion) liquefied natural gas (LNG) plant in the northern Australian city of Darwin, The Australian newspaper reported on Monday.

Australian Labor Shortage, Costs To Crimp LNG Output
Apr 16, 2008 - More than US$100 billion of Australian, Timor Sea and Papua New Guinea LNG projects are planned over the next decade, but a severe labor shortage and surging costs mean many projects won't go to schedule, keeping global supply tight.

Inpex, Total Taking 'Serious Look' at Darwin LNG Plant - Exec
Feb 27, 2008 - INPEX Browse, Ltd. (INPEX) and joint venture partner Total welcome the signing of a Project Facilitation Agreement (PFA) with the Northern Territory Government, Managing Director of INPEX, Jiro Okada, said in Darwin, Australia Wednesday.

Inpex Denies Rumors of Gas Project Shift
Oct 17, 2007 - Inpex has rejected speculation that it may move its gas project from the Kimberley region in northern Western Australia, to the Northern Territory.

Total Takes Stake in Ichthys LNG Project
Aug 31, 2006 - Total announces the signature of an agreement with Japanese energy company INPEX to acquire a 24% interest in Block WA 285-P, located in approximately 250 meters of water offshore northwestern Australia.