Total and Inpex to invest in Australian LNG project

Jan 15, 2012 12:00 AM

Total and its joint venture partner Inpex have announced that they have taken the final investment decision for the Ichthys liquefied natural gas (LNG) project in Australia, representing an investment of $ 34 bn.
Total holds a 24 % interest in the project which will develop approximately 3 bn barrels oil equivalent of reserves, including around 500 mm barrels of condensate. First production is expected at the end of 2016.

“Through this project, Total further increases its presence in Australia and its access to the Asian LNG market, the fastest growing market offering high-value prices,” said Yves-Louis Darricarrère, President of Exploration & Production, Total.
“Total and Inpex have a long and successful history of working together all around the world. We are delighted to launch this world-scale project and to support it with our technical expertise and our best-in-class competencies in the management of very large projects.”

The Ichthys project consists of the development of the Ichthys gas and condensate field offshore North West Australia (lying in 260 metres of water depth) and the construction of an 889 km gas transmission pipeline together with an onshore LNG plant near Darwin in the Northern Territory.
The offshore facilities will consist of a subsea well development connected to a central processing facility (CPF1) for gas treatment and a floating processing, storage and offloading (FPSO2) vessel for condensates. The CPF and the FPSO will both be one of the largest in the world.

Onshore installations will consist of two LNG trains with a capacity of 4.2 mm tpy each and facilities for the extraction and the export of LPGs and condensate. In addition to its LNG production, the Ichthys project is expected to generate 1.6 mm tpy of LPGs and 100,000 barrels of condensate a day at peak.
Notably, the entire annual production of LNG from the Ichthys project (8.4 mm tpy) has already been sold for 15 years under oil-linked price contracts, mostly directed to third-party consortiums of Taiwanese and Japanese buyers including Inpex. Total Gas & Power Limited, the gas trading subsidiary of Total, will also purchase 0.9 mm tpy of LNG from the project to supply directly its customers.

The plans for development and operation of the Ichthys project have been approved by Australian authorities, and construction will commence in the second quarter of 2012. Total E&P has been present in Australia since 2005 and has interests in nine offshore exploration licenses, four of which it operates, in the Browse, Vulcan and Bonaparte Basins on the northwest shelf.
In addition to the Ichthys project, Total has, in Queensland, a 27.5 % interest alongside Santos, Petronas and Kogas in the GLNG Coal Seam Gas to LNG project launched in early 2011.

The GLNG project consists of the development of coal seam gas fields, the construction of a 420 km gas transmission pipeline and of a liquefaction plant of 7.2 mm tpy.
First LNG will be delivered in 2015.

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