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Australian LNG attracts new $30 billion investment

30 January 2012

A$34 billion investment in Australia’s Ichthys liquefied natural gas (LNG) field will move Australia towards being the world’s largest exporter of LNG.

The joint venture between French and Japanese exploration companies, Total and Inpex, brings total investment in Australia’s LNG sector to more than A$175 billion.

Producing around 8.4 million tonnes of LNG per year, the Ichthys gas field development will be the second largest resource project in Australia. Under oil-linked price contracts, Inpex and Total have already sold 126 million tonnes of LNG to buyers in Taiwan and Japan.

The project will consist of one of the world’s largest gas transmission pipelines; offshore treatment, processing and storage facilities; and an onshore LNG plant near Darwin. Construction is expected to commence in the second quarter of 2012.

With its investment, Inpex will become the first Japanese company to operate a LNG project worldwide; the company’s 66 per cent interest in the Australian gas field is the cornerstone of its 21st century growth strategy.

Total’s President of Exploration and Production, Yves-Louis Darricarrère, said the Ichthys project will build on the companies’ long history of collaboration, enhance Total’s operations in Australia, and drive the company’s growth.

“Through this project, Total further increases its presence in Australia and its access to the Asian LNG market, the fastest growing market offering high-value prices,” Mr Darricarrère said.

Australia’s Minister for Resources, Energy and Tourism, Martin Ferguson hailed the announcement as a landmark decision for Australia and the clean energy sector.

“Major investments like the Ichthys Project mean prosperity and opportunity for Australians and for those nations turning to Australian LNG as a source of clean energy,” Mr Ferguson.

“Australia is well on track to becoming the major gas supplier in the Asia-Pacific region – the world’s engine room of economic growth in the 21st Century.”

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