Cost overrun on Ichthys LNG project to be minimal

Cost overruns on the Inpex-led Ichthys liquefied natural gas project (LNG) will be minimal despite the start-up being pushed back by up to six months from the previous target of Q3 2017. 

Speaking to Reuters, Masahiro Murayama, Inpex’s senior managing executive officer, said the cost overrun if there is any could be up to a few percent, but it would not have any material impact on the project.

Inpex, that saw its two offshore facilities, the central processing facility (CPF) Ichthys Explorer and the Ichthys Venturer FPSO, sail away from their respective shipyards in South Korea, noted that the production would start before the end of the current fiscal year, ending March 31, 2018.

At full capacity, the project will be producing 8.9 million tons of LNG per year.

The project is a joint venture between Inpex, major partner Total, Taiwan’s CPC Corporation and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Kansai Electric, Chubu Electric Power and Toho Gas.

LNG World News Staff