Total said Thursday that it has acquired an additional 6% interest in the Ichthys liquefied natural gas (LNG) project from its partner INPEX. Total’s overall equity stake in the Ichthys LNG project grows from 24% to 30%.
The acquisition does not impact any of the LNG offtake agreements with the entire annual production of LNG (8.4 million tons per annum) having already been sold for 15 years. Total, through its gas trading subsidiary, will purchase 0.9 million tons per year of this LNG.
“We are delighted to have increased our stake which demonstrates our confidence in this world class Ichthys LNG project. This further enhances our presence in Australia and our position as supplier in the Asian LNG market, the fastest growing market offering high value prices linked to oil. This move also consolidates Total’s strategy as a leading LNG player.” declared Yves-Louis Darricarrère, President of Total Exploration & Production.
The transaction remains subject to Australian Authorities approval.
The Ichthys LNG Project
Total and INPEX announced the final investment decision (FID) for the $34 billion dollar Ichthys liquefied natural gas project in Australia in January 2012. The project will develop approximately 3 billion barrels oil equivalent of reserves, including around 500 million barrels of condensate. The LNG plant ground breaking ceremony took place on May 18 2012 in Darwin in the presence of Australia’s Prime Minister. First production is expected by the end of 2016.
Total and INPEX have a long and successful history of working together all around the world. Total brings to this world-scale project its technical expertise and best-in-class competencies in the management of very large projects.
The Ichthys LNG project consists of the development of the Ichthys gas and condensate field offshore North West Australia (lying in 260 metres of water depth) and the construction of an 889 kilometers gas transmission pipeline together with an onshore LNG plant near Darwin in the Northern Territory.
The offshore facilities will consist of a subsea multi wells development connected to a central processing facility (CPF) for gas treatment and a floating processing, storage and offloading (FPSO) vessel for condensates. The CPF and the FPSO will both be one of the largest in the world.
Onshore installations will consist of two LNG trains with a capacity of 4.2 million tons per year each and facilities for the extraction and the export of LPGs and condensate. In addition to its LNG production, the Ichthys LNG project is expected to generate 1.6 million tons per year of LPGs and 100,000 barrels of condensate a day at peak.