Inpex to increase stake in Ichthys LNG project

Japan’s energy company Inpex Corporation is planning to enter into an agreement with Tokyo Gas in relation to the acquisition of the participating interests (1.575%) held by Tokyo Gas in the Ichthys LNG project, through Tokyo Gas Australian project subsidiaries.

Through this acquisition, Inpex said its project subsidiaries will increase their participating interests in the Ichthys LNG project from 66.245% to 67.82%, adding that the completion of the acquisition is subject to the fulfilment of certain conditions, including approval by the Australian government’s regulatory agencies.

The agreement resulted from the October 2022 decision by Tokyo Gas to sell the shares in its Australian project subsidiary that holds participating interests (1.575%) in the projects to MidOcean Energy Holdings, Inpex noted, adding that in accordance with the relevant joint operating agreements (JOAs) and shareholder’s agreement (SHA), Tokyo Gas notified the proposed sale to the projects’ participating interest holders whereupon Inpex exercised its rights under the JOAs and SHA to acquire Tokyo Gas’s interest in the projects.

According to Inpex, the company’s acquisition of an additional participating interest in the projects is aligned with the pursuit of its business targets and pathways outlined in the ‘Long-term Strategy and Medium-term Business Plan’ and will contribute to energy security in Japan and the Asia-Pacific region.

To note, the Ichthys LNG is led by Inpex as the project operator, alongside major partner TotalEnergies and the Australian subsidiaries of CPC Corporation Taiwan, Tokyo Gas, Osaka Gas, Kansai Electric Power, Jera and Toho Gas.

At its peak production, Ichthys LNG is capable of producing up to 8.9 million tons per annum (mtpa) of LNG and 1.65 mtpa of liquefied petroleum gas (LPG). The first LNG cargo was shipped in October 2018 and the milestone of shipping the 500th LNG cargo from this project was marked in March 2023.

At the end of 2023, GR Production Services, a wholly-owned subsidiary of GR Engineering Services, secured a contract with Inpex Operations Australia to provide operations and maintenance support services to the Ichthys LNG upstream and downstream facilities.

The scope of work involves providing production and technical roles to Inpex as required to supplement their business and support for maintenance shutdown planning and execution on all facilities.