Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

UPDATE 1-Japan's Inpex expects to ship first LNG cargo from Ichthys site in Aus by end-Sept -source

Published 17/05/2018, 04:27 pm
UPDATE 1-Japan's Inpex expects to ship first LNG cargo from Ichthys site in Aus by end-Sept -source
TTEF
-
CL
-
NG
-
1605
-
9501
-
9502
-
9503
-
9531
-
9532
-
9533
-

* First cargo to be sent to Inpex's Japan LNG terminal -sources

* Expected to be shipped by late-September -source

* Giant LNG project has been delayed multiple times

(Adds detail)

By Osamu Tsukimori and Jessica Jaganathan

TOKYO/SINGAPORE, May 17 (Reuters) - Japan's Inpex Corp 1605.T expects to ship the first liquefied natural gas (LNG) cargo from its giant Ichthys LNG project in Australia by the end of September, an industry source with knowledge of the matter said on Thursday.

The source, who declined to be identified as he was not authorised to speak with media, said the shipment would come by late-September, although it could be sent a month or more earlier.

A spokesman for Inpex, Japan's top oil and gas producer, said the company could not give a schedule for the first cargo.

The around $40 billion Ichthys project has seen multiple delays and cost overruns of billions of dollars due to technical difficulties. It was originally slated to start in 2016.

The commissioning LNG cargo from Ichthys will be exported to Inpex's Naoetsu LNG terminal in Japan, according to the first source and a second one also familiar with the matter.

Inpex has said the Ichthys project will start-up this month with gas production set to begin by the end of May. holders in Ichthys are seeking five liquefied natural gas (LNG) cargoes for delivery into Japan and Taiwan over July to September to replace LNG they will not be able to supply from Ichthys due to delays in its start-up, two traders told Reuters.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

That is to fulfil contractual commitments to buyers such as Taiwan's state-owned CPC Corp CHIP.UL and the world's top LNG buyer JERA Co, a fuel joint venture of Tokyo Electric 9501.T and Chubu Electric 9502.T , one of the traders said.

The Inpex spokesman declined to comment, citing a confidentiality agreement with customers.

"They have indicated their interest just to a few companies, so the requirement is not firm yet," the trader said, adding that offers were due by Thursday.

At full operation, Ichthys is expected to produce 8.9 million tonnes of LNG a year, along with about 1.7 million tonnes of liquefied petroleum gas and about 100,000 barrels per day of condensate, an ultra-light form of crude oil.

Inpex holds 62.245 percent of Ichthys, France's Total TOTF.PA 30 percent, with the rest spread amongst Taiwan's CPC Corp CHIP.UL and Japanese utilities Tokyo Gas 9531.T , Osaka Gas 9532.T , Kansai Electric 9503.T , JERA Corp and Toho Gas 9533.T .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.