The ramp-up of the 8.9mn t/yr Ichthys LNG venture at Darwin, Australia, is ahead of expectations, allowing operator Japanese upstream firm Inpex to put additional cargoes into the spot market.
Inpex has offered two Ichthys cargoes for loading in October, having previously offered three cargoes for September loading.
This higher than expected LNG spot offering at a time of low prices is because of the better than expected ramp-up of the Ichthys project, which shipped its first LNG cargo in October last year, rather than any reticence in contracted buyers to take their tonnes, according to Inpex.
Ichthys is in the process of loading its 75th cargo and Inpex plans to reach 100 cargoes before the end of this year. Ichthys loads three cargoes a week at full capacity, and it has had extended periods of operating at this nameplate capacity over the past few months.
The final part of construction at Ichthys is the troubled power plant, which should be completed in the next two months, drawing to a close the building phase.
The operator will then focus on debottlenecking the plant and offshore infrastructure, which could see the plant operating at above its 8.9mn t/yr capacity, as the PNG LNG project in Papua New Guinea (PNG) has achieved.
Inpex is studying exploration opportunities both offshore and onshore Australia to firstly ensure that the existing Ichthys project is fully used to produce LNG, then to look for backfill for the 40-year project life and finally to underpin possible expansion opportunities, Inpex's senior executive vice-president Seiya Ito told the southeast Asia Australian offshore and onshore conference (SEAAOC) in Darwin.
Inpex has 20 offshore exploration permits, focused around its existing Ichthys field, and is applying for a permit in the onshore Beetaloo sub-basin of the Macarthur basin in the Northern Territory of Australia, which could provide enough gas for significant future expansions if its initial potential is realised.
Inpex held its first board meeting outside of Japan in Darwin this year, as it looks to Australia to supply the gas and liquids to help it reach its objective of becoming a top 10 international oil and gas firm by 2040. As part of this ambition Inpex is looking to supply Australia's domestic gas market as well as increasing its LNG exports from Darwin.
Inpex is the operator of Ichthys with a 66.3pc stake, while Total owns 26pc.
