Ichthys LNG

Image Source : Ichthys LNG

Location : Darwin

In 1980, Woodside Petroleum first drilled for gas at the Ichthys field. Subsequently in 1998, INPEX acquired the drilling rights for the field, discovering massive reserves in the Browse Basin in the year 2000. Located approximately 220 kilometres offshore Western Australia and 820 kilometres southwest of Darwin, Ichthyssignifies the largest hydrocarbon liquid discovery in Australia in 50 years. The field, spread over 800 square kilometres in waters around 250 metres deep, holds more than 12 trillion cubic feet of gas and 500 million barrels of condensate.

In 2012, the final investment decision was achieved to construct an LNG mega project, which would represent one of the largest, most complex subsea infrastructure networks in the world. Darwin, in the Northern Territory, was preferred as the location for building the onshore processing facilities, instead of Western Australia, which was the closer shore. The ground breaking ceremony was held on 18 May 2012, with the Australian Prime Minister officially launching the project. The IchthysProject, one of Australia’s biggest gas project, is a joint venture between INPEX Browse Ltd (76%, the operator) and Total Australia (24%). Branded as “a world-class project”, Ichthys LNG is in essence three mega projects rolled into one – an LNG plant (onshore), a central processing facility (CPF) and a floating production storage and offloading (FPSO) vessel.

Ichthys Explorer (the project’s CPF) houses the gas processing systems and utilities, along with living quarters for approximately 200 people. The 130 meters high, 150 m x 110 m platform is the world’s largest semi-submersible platform. It is permanently moored near the field using 28 mooring lines with over 25,000 tonnes of anchor chain, and can withstand even Category 5 cyclones. Ichthys Venturer (the project’s FPSO) is a 336 metre-long ship-shape vessel, capable of processing, storing and offloading majority of the condensate for further export. The balance production is compressed and sent back to the CPF through a subsea transfer line for further dispatch to Bladin Point near Darwin via a gas export pipeline (GEP). The 890 kilometre, 42-inch diameter GEP is one of the longest subsea pipelines ever built, consuming approximately 700,000 tonnes of steel and 550,000 tonnes of concrete. The onshore facilities include two LNG processing trains, LPG and condensate plants, storage tanks, a combined cycle power plant, administration facilities, utilities and a loading jetty.

The US$34 million project is expected to produce 8.9 MMTPA of LNG, 1.6 MMTPA of LPG and 100,000 barrels per day of condensate. Maiden shipment of condensate was dispatched from the project on 1 October 2018 to Singapore. Shortly thereafter on 22^nd October 2018, first official LNG shipment was sent to INPEX’s Naoetsu natural gas terminal in Niigita, Japan. The project is expected to have an operational life of 40 years.

INPEX claims its commitment to contributing to the sustainable development of the communities in which they operate, improving social and economic wellbeing, minimising impact and building communities that are vibrant, prosperous and resilient. The company has invested in the Kimberley community through sponsorships in areas such as arts and culture, Aboriginal and Torres Strait Islander Peoples initiatives and education. Since 2012, they have funded community programs worth more than A$4 million, spent in excess of A$9 million to develop training and education institutions in the Northern Territory (NT), invested over A$20 million to improve community road infrastructure and safety and offered A$500,000 to support and improve the Djarindjin-Lombadina airport.

The project is expected to have created about 4,000 Australians jobs, including employment of more than 800 Aboriginal and Torres Strait Islander and incorporating more than 200 trainees. Ichthys claims to have contributed over $13 billion to the Australian economy providing significant opportunities for local businesses and residents. The Ichthys LNG Project undertook a world-class environmental monitoring program throughout its construction phase. This includes on-shore and near-shore environmental monitoring programs, which offer full transparency to the local community

OWNERSHIP (Equity %)

INPEX	62.245%
Total	30.00%
CPC Corporation, Taiwan	2.625%
Tokyo Gas	1.575%
Osaka Gas	1.2%
Kansai Electric Power	1.2%
JERA	0.735%
Toho Gas	0.42%

General Data

Estimated Capital Cost (USD)	17 B per Train
Plant Type	Onshore Modular
Plant Stage	Train 1 – Construction Train 2 – Operating
Final Investment Decision (FID) Year	2012
FEED Contractor	KBR
EPC Contractor	KBR JGC Corporation Chiyoda Corporation
No. of Trains / capacity	2 Trains / 4.45 MMTPA each
Production Start Year	Train 1 – 2019 Train 2 – 2018
Products	LNG, LPG, Condensate
Gas Type	Non-associated Gas (NAG)

Technical Data

coming soon…

Refrigeration Train Configuration

coming soon…

Key Facts

The Ichthys LNG Project is a Joint Venture between INPEX group companies (the Operator), major partner Total, CPC Corporation Taiwan and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Kansai Electric Power, JERA and Toho Gas. The project represents the largest ever investment by a Japanese company outside Japan. Japan is the world’s biggest importer of LNG. Ichthys LNG project is expected to produce 8.9 million tons of LNG and 1.6 million tons of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak. The LNG production of the plant is equivalent to 10% of Japan’s total LNG imports. Approximately 70% of LNG exports from the project will be delivered to Japan.¹
The project employed a fully modular construction strategy to minimize onshore construction activities. A total of 230 modules, with a consolidated weight of 180,000 tons, were shipped from four different fabrication yards – two in Thailand and one each in China and the Philippines. Certain modules weighed as much as 5500 tonnes or measured as much as 90m long.^2,3,4,5
Ichthys LNG’s 42-inch diameter gas export pipeline spans 890 kms. It is the longest subsea pipeline in the southern hemisphere and the third longest in the world.⁶
Ichthys contracted SBM Offshore for the FPSO’s turret mooring system. It includes not only the world’s third largest turret, but also the largest swivel stack in the world. It is also the first to offer a 40-year in-situ design life, with a 10,000 tonnes mooring load capacity and the ability to withstand category 8 cyclones.⁷
Ichthys LNG, experienced a series of cost overruns and construction delays, akin to recent Australian LNG projects. The initial budget was estimated at US$20 billion. Over the years the budget was revised to $30 billion pre-FID, US$34 billion at FID, US$40 billion in 2017 and US$45 billion in 2018. Cost blowouts have been attributed to reasons such as project complexities and strict environmental regulations, while delays have been linked to an industrial accident and contractual disputes.^8,9,10,11
In 2017, CIMIC, who was contracted to build the project’s combined cycle power plant (CCPP), announced termination of its contract with EPC contractor, JKC Consortium (JGC Corporation, KBR, Chiyoda Corporation). The plant was 89% complete at that stage. Subsequently, in 2018, Australia’s National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) found issues in the electrical equipment in hazardous areas at the Ichthys LNG project’s Central Processing Facility during an inspection. These unexpected matters compounded the construction delays and contributed further to additional costs.^12,13,14
By June 2011, Ichthys LNG had secured sales and purchase agreements (SPA) with multiple Japanese and Taiwanese companies, covering its nameplate capacity of 8.4 MMTPA of LNG for a period of 15 years. In March 2017, Ichthys signed an SPA with Astomos, a Japanese LPG shipping, trading and import company, for sale of its LPG production on a free-on-board basis.^15,16
In September 2017, Ichthys LNG acquired and named two new LNG carriers – Pacific Breeze and Ocean Breeze. Pacific Breeze, a 182,000m³ tank vessel, is the world’s first MOSS-type LNG tanker to adopt an electric propulsion system that features a diesel engine, fueled by both natural gas and bunker fuel, providing high fuel efficiency. Ocean Breeze, a 155,300m³ tank vessel, built by Mitsubishi Heavy Industries, features MHI’s “Sayaendo” design.^17,18
On 1^st October 2018, first shipment of condensate was dispatched from the off-shore FPSO. Maiden LNG shipment was undertaken aboard LNG vessel ‘Pacific Breeze’ on 22^ndOctober 2018 to INPEX-operated Naoetsu LNG Terminal in Niigata Prefecture, Japan. LNGvessel ‘Ocean Breeze’ made its first voyage to the same destination in early 2019. Ichthysshipped its first LPG cargo onboard ‘Hellas Gladiator’ carrier in November 2018, while the first condensate shipment from the on-shore plant was dispatched in December 2018.^19,20,21,22