LNG

Inpex delay rejected 

TOTAL CEO Patrick Pouyanne has reportedly told the Gastech conference in Japan that the company's massive $US37 billion ($A49 billion) Ichthys LNG project is not expected to deliver its first cargo until early 2018, although operator Inpex is holding to its schedule, <i>Energy News</i> has been told.

Inpex delay rejected 

Reuters reported Pouyanne as saying first liquids would be sold by the end of the year and LNG in early 2018, while Inpex's timetable is for first gas by the end of September.
 
The project, which has been delayed once already from the initial start-up in 2016, has suffered a few high profile setbacks, including the loss of almost 1000 workers when one of its major contractors, Laing O'Rourke, quit over a pay dispute with Kawasaki Heavy Industries.
 
Earlier, a dispute involving CIMIC halted work on the power generator for the LNG plant, a project that had already been behind schedule for UGL, now part of CIMIC, and CH2M Hill.
 
An Inpex spokesperson told Energy News that Pouyanne's comments may not be fully understood.
 
"There is a range in the interpretation of the term ‘start of production', and we believe recent media reports indicate Total's interpretation of developments around the start of production.
 
"Construction of the central processing facility and FPSO is complete, and commissioning is in the final stages, in preparation for sail-away.
 
"The exact date of sail away of will depend on the progression of final commissioning activities and weather conditions.
 
"The Ichthys LNG project is more than 90% complete and the published schedule remains unchanged."
 
The field is located almost 1000km from the LNG plant at Darwin. 
 
Inpex's steadfast belief the field will start production this year come despite recent complications with the development of the plant at Darwin and the history of most Australian LNG projects facing delays. 
 
The FPSO and CPF are still in shipyards in South Korea and should set sail for Australia "soon", Pouyanne said.

 

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